Launch Company Sells 2500 Paddleboards Per Year at a Sales

Multiple Choice

Launch Company sells 2500 paddleboards per year at a sales price of $470 per unit.Launch sells in a highly competitive market and uses target pricing.The company has $800,000 of assets,and the shareholders wish to make a profit of 16% on assets.Variable cost is $190 per unit and cannot be reduced.Assume all products produced are sold.What are the target fixed costs?

A) $1,175,000
B) $1,047,000
C) $128,000
D) $572,000