Dugout Water Products Sells 2000 Kayaks Per Year at a Price

Multiple Choice

Dugout Water Products sells 2000 kayaks per year at a price of $470 per unit.Dugout sells in a highly competitive market and uses target pricing.The company has $990,000 of assets,and the shareholders wish to make a profit of 18% on assets.Assume all products produced are sold.What is the target full product cost?

A) $17,820,000
B) $761,800
C) $1,109,200
D) $940,000