Blue Spruce Water is considering introducing a water filtration device for its 20-ounce water bottles. Market research indicates that 1,000,000 units can be sold if the price is no more than $ 3. If Blue Spruce Water decides to produce the filters, it will need to invest $ 2,000,000 in new production equipment. Blue Spruce Water requires a minimum rate of return of 15% on all investments. Determine the target cost for the filter. (Round answer to 2 decimal places, e.g. 10.50.)

Target cost per unit

$ enter the target cost per unit in dollars rounded to 2 decimal places

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Marigold Corporation produces area rugs. The following unit cost information is available: direct materials $ 16, direct labor $ 8, variable manufacturing overhead $ 3, fixed manufacturing overhead $ 8, variable selling and administrative expenses $ 5, and fixed selling and administrative expenses $ 9. Using a 40% markup on total per unit cost, compute the target selling price. (Round answer to 2 decimal places, e.g. 10.50.)

Target selling price

$ enter the target selling price in dollars rounded to 2 decimal places