1. ABC Company set a target net income (ignore income tax in this problem) of $200,000. At the planned sales volume, the variable and fixed costs are $2,000,000 and $400,000, respectively. All fixed costs are common. If the selling price is $13/unit, and the allocated fixed cost is $2/unit, what is the target variable cost (to the nearest cent) to make it mark-up over full costs? A. $9.00 B. $9.80 C. $10.00 D. $10.15