Tony Hawk is planning on opening a new indoor skateboard facility in Athens. He wants to name the skate park$$ "Accounting Central" because a lot of accountants are skaters as well. Accounting Central will us a membership model to generate$$ revenue, allowing customers to purchase a monthly membership and gain unlimited access to the park. When$$ operating, Accounting Central is estimated to have$$ $$650,000$ in assets. Shareholders are anticipating receiving a$15\%$ return on the assets as operating income. The$$ facility's annual fixed costs are expected to be$$ $$96,000.$ The variable costs per skater are estimated to be$$ $$15$ per month. After analyzing the$$ market, Accounting Central believes it can sell $150$ memberships in the first month.$$ Furthermore, the company has noted that a number of other skaters have started similar$$ skate$-$parks in the$$ area, leading to high competition in the area.

Which of the following statements is incorrect regarding the$$ company's first month of operations assuming a sales price of$$ $$120$ per$$ membership?

Question $6$ options:

Holding all other variables$$ constant, if the company reduces fixed costs by$$ $$375$ per$$ month, the company will meet its target monthly operating income.

Total monthly target costs for the company are$$ $$9,875.$

Holding all other variables$$ constant, if the company reduces variable costs to$$ $$12\mathrm{.}50$ per$$ skater, the company will meet its target monthly operating income.

Accounting Central is considered to be a price taker in the Athens market.

If the company decided to leave all operations as they currently$$ stand, shareholders would be content with the operating profit achieved.