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Ignite Products is a price taker. The company produces large spools of electrical wire in a highly competitive market; thus, it uses target pricing. The current market price of the electric wire is $800 per unit. The company has $3,200,000 in average assets, and the desired prot is a return of 7% on assets. Assume all products produced are sold. The company provides the following information: Sales volume 110,000 units per year Variable costs $710 per unit Fixed costs $13,000,000 per year If xed costs cannot be reduced, how much reduction in variable costs will be needed to achieve the desired target? 0 A. $224,000 0 a. $13,000,000 O 0. $3,324,000 0 D. $73,100,000