Answer: $17,209,000
Explanation:
Given that,
Production volume = 602,000 units per year
Market price = $32 per unit
Desired operating income = 15% of total assets
Total assets = $13,700,000
Total Income = 15% of Total assets
= $13,700,000 × 15%
= $ 2,055,000
Total Sales = Market price × Production volume
= $32 × 602,000
= $ 19,264,000
Target full product cost in total for the year = Total Sales - Total Income
= $ 9,264,000 - $2,055,000
= $17,209,000
