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Peacock, Inc. sells 2,000 kayaks per year at a sales price of $460 per unit. It sells in a highly competitive market and uses target pricing. The company has calculated its target full product cost at $810,000 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) $405
B) $235
C) $575
D) $170
Textbook 
Horngren's Financial & Managerial Accounting, The Financial Chapters

Horngren's Financial & Managerial Accounting, The Financial Chapters


Edition: 5th
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