Kayak Inc. sells 2,500 kayaks per year at a price of $500 per unit
January 4th, 2018
Kayak Inc. sells 2,500 kayaks per year at a 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 $350,000 per year and cannot be reduced. How much is the target variable cost per unit?a. $188b. $328c. $360d .$172