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Fixed costs are 340000 per year and cannot be reduced what

Problem

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?

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Accounting Basics: Fixed costs are 340000 per year and cannot be reduced what

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Accounting Basics: Fixed costs are 340000 per year and cannot be reduced what

Reference No:- TGS02750845

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