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Donnelley Products sells 2,000 kayaks per year at a sales price of $460 per unit. Donnelley sells in ...

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Donnelley Products sells 2,000 kayaks per year at a sales price of $460 per unit. Donnelley sells in ...

Donnelley Products sells 2,000 kayaks per year at a sales price of $460 per unit. Donnelley sells in a highly competitive market and uses target pricing. The company has $1,000,000 of assets, and the shareholders wish to make a profit of 17% on assets. Variable cost is $200 per unit and cannot be reduced. Assume all products produced are sold. What are the target fixed costs?
A) $920,000
B) $750,000
C) $170,000
D) $350,000

Textbook

Horngren's Accounting

Edition: 11^th

Authors: Miller-Nobles, Mattison, Matsumura

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kourtni Author

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Helps a lot... Now I'm ready for my quiz

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