Ortiz Company is a price - taker and uses target pricing. Refer to the following information:...

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Ortiz Company is a price - taker and uses target pricing. Refer to the following information: Production volume Market price Desired operating income Total assets Variable cost per unit Fixed cost per year 601,000 $30 units per year per unit 15% of total assets $13,800,000 $20 per unit $5,600,000 per year With the current cost structure, Ortiz cannot achieve its profit goals. It will have to reduce either the fixed costs or the variable costs. Assuming that fixed costs cannot be reduced, what are the target variable costs per year? Assume all units produced are sold OA. $10,360,000 B. $5,600,000 OC. $12,020,000 OD., $15,960,000 Ortiz Company is a price - taker and uses target pricing. Refer to the following information: Production volume Market price Desired operating income Total assets Variable cost per unit Fixed cost per year 601,000 $30 units per year per unit 15% of total assets $13,800,000 $20 per unit $5,600,000 per year With the current cost structure, Ortiz cannot achieve its profit goals. It will have to reduce either the fixed costs or the variable costs. Assuming that fixed costs cannot be reduced, what are the target variable costs per year? Assume all units produced are sold OA. $10,360,000 B. $5,600,000 OC. $12,020,000 OD., $15,960,000