Beck Industries, Inc. builds parts for large automated heavy equipment. The Vice President for Marketing has determined that sales are dwindling for the firm's products because of aggressive pricing by competitors. Beck Industries sells the product for $725 whereas the competition's comparable part is selling in the $650 range. The VP for Marketing has determined that a price drop to $635 is necessary to regain market share and annual sales of 1,800 units Data based on sales of 1,800 units are as follows: Budgeted Amount tual Amount Cost Direct Materials (sheet metal) Direct Labor Machine Setups Mechanical Assembly 8,000 sq.ft. 4,800 hrs. 2,600 hrs. 3,200 hrs. $9.60 per sq.ft. $32.60 per hour $38.00 per hour $35.00 per hour 10,000 sq.ft. 5,000 hrs 2,800 hrs 3,600 hrs Q. If a profit per unit of 40% is desired, the target cost would be: $254.00 $109.20 $290.00 $381.00