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# Peacock, Inc. sells 2,100 kayaks per year at a sales price of $500 per unit. It sells in a highly ... wrote... Posts: 321 Rep: 5 years ago Peacock, Inc. sells 2,100 kayaks per year at a sales price of$500 per unit. It sells in a highly competitive market and uses target pricing. The company has calculated its target full product cost at $820,000 per year. Fixed costs are$340,000 per year and cannot be reduced. What is the target variable cost per unit assuming units sold are equal to units produced?
A) $229 B)$390
C) $552 D)$162
Textbook

## Horngren's Accounting

Edition: 11th
Authors:
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wrote...
5 years ago
 AExplanation:  A) Target full product cost$820,000Less: Fixed costs340,000Target variable costs$480,000Target variable cost per unit = $480,000 / 2,100 units =$229
sorandomkay13 Author
wrote...
5 years ago
 Helps a lot... Now I'm ready for my quiz
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