Based on the results of an extensive market research, the newly recruited finance director of Octopus, an innovative manufacturer of modern jewellery, has established a target selling price of R$8500$ has been for a newly developed necklace. Octopus has estimated total sales volume of $350000$ units of the necklace across the African Continental Free Trade Area $($AfCFTA$).$ Octopus wants to achieve a target profit margin of $35\%.$

Time

Marke

P Flag

Informed by the data gathered so far, the finance director has projected the following:

Production costs per unit

R

Direct material

$570$

Direct labour

$475$

Direct machining

$959,5$

Set$-$up

$85,5$

Inspection and testing

$817$

Total non$-$production costs

R

Design $($salaries and technology$)$

$475000000$

Marketing consultants

$323000000$

Distribution

$266000000$

What is the forecast cost gap per unit of the necklace?

$$ A$.$ R$5525$

$$ B$.$ R$422$

$0$ C$.$

R$2.975$

$$ D$.$

R$5947$