owler Company is a priceminustaker and uses target pricing. Refer to the following$$ information:

Production volume

$601,000$

$$units per year

Market price

$$$$30$

$$per unit

Desired operating income

$16\%$

$$of total assets

Total assets

$$$$13,800,000$

$$

Variable cost per unit

$$$$18$

$$per unit

Fixed cost per year

$$$$5,400,000$

$$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.