Blair Stationery Company is a

priceminus?taker

and uses target pricing. The company has just done an analysis of its? revenues, costs, and desired profits and has calculated its target full product cost. Assume all products produced are sold. Refer to the following? information:

Target full product cost	?$500 comma 000500,000	per year
Actual fixed cost	$ 280 comma 000$280,000	per year
Actual variable cost	$ 2$2	per unit
Production volume	152 comma 000152,000	units per year

Actual costs are currently higher than target full product cost. Assuming that fixed costs cannot be? reduced, what are the target total variable? costs?

A.

$ 280 comma 000$280,000

B.

$ 220 comma 000$220,000

C.

$ 304 comma 000$304,000

D.

$ 500 comma 000$500,000