Fowler Company is a price taker and uses target pricing. Refer to the following...
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Fowler Company is a price taker and uses target pricing. Refer to the following information: Production volume Market price Desired operating income Total assets Variable cost per unit Fixed cost per year 601,000 units per year $30 per unit 17% of total assets $13,800,000 $18 per unit $5,500,000 per year With the current cost structure, Fowler cannot achieve its profit goals. It will have to reduce either the fixed costs or the variable costs. Assuming that variable costs cannot be reduced, what are the target fixed costs per year? Assume all units produced are sold. A. $5,500,000 B. $10,818,000 O C. $12,530,000 D. $4,866,000
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