After conducting a phone survey, Bad Backs Manufacturing decided to produce a new computer backpack to complement its backpack line. It is estimated that the new computer backpack can be sold at a target price of $80. The annual target sales volume for computer backpacks is 18,000. Bad Backs has target operating income of 25% of sales. What is the target cost? OA. $1,440,000 OB. $1,600,000 OC. $1,080,000 OD. $800,000 O E. $960,000