Outrigger leisure products sells 2,000 kayaks per year at a price of $450 per unit. outrigger sells in a highly competitive market and uses target pricing.
the company has $1,000,000 of assets and the shareholders wish to make a profit of 16% on assets. fixed costs are $475,000 per year and cannot be reduced.
assume all products produced are sold.

what are the target variable costs?

a. $740,000

b. $1,000,000

c. $118,401

d. $265,000

The stock of grommet corporation, a u. s. company, is publicly traded, with no single shareholder owning more than 5 percent of its outstanding stock. grommet owns 95 percent of the outstanding stock of staple inc., also a u. s. company. staple owns 100 percent of the outstanding stock of clip corporation, a canadian company. grommet and clip each own 50 percent of the outstanding stock of fastener inc., a u. s. company. grommet and staple each own 50 percent of the outstanding stock of binder corporation, a u. s. company. which of these corporations form an affiliated group eligible to file a consolidated tax return?