Calculate the target fixed costs from the following data:

A company sells 2,000 Pieces of fans per year at a price of $450 per unit. Company sells in a highly competitive market and uses target pricing. The company has calculated its target full product cost at $720,000 per year. Total variable costs are $330,000 per year and cannot be reduced. How much are the target fixed costs?

A) $570,000

B) $180,000

C) $330,000

D) $390,000

Answer rating: 100% (QA)

D 390000 Explanation ... View the full answer