Cann Un Company manufactures scientific calculators. The product life of a calculator is four years.Each model typically offers similar features.Cann Un targets an average profit margin of 10% of its expected revenue over the life cycle.It does not expect its manufacturing cost to vary materially over the four-year life. Estimated volumes and unit price of a particular model over its expected life is given below:

Year

Volume (units)

Unit price

Year 1

30,000

$85

Year 2

50,000

$75

Year 3

35,000

$50

Year 4

25,000

$45

Applying the target costing model, the allowable unit cost of the product is:

Group of answer choices

1) $65.53 per unit

2) $150.77 per unit

3) $45.00 per unit

4)$58.98 per unit

5) $63.75 per unit