Dexter, Inc. manufactures various lines of computer equipment and is planning to introduce a new line of laptops. Current plans call for the production and sale of 1,000 units, with estimated costs as follows:

Variable costs:
Manufacturing	$462,000
Selling and administrative	112,000
Total variable costs		$574,000
Fixed costs:
Manufacturing	$312,000
Selling and administrative	192,000
Total fixed costs		504,000
Total costs		$1,078,000

The average amount of capital invested in the laptop product line is $880,000 and Dexter's target return on investment is 15%.

What price must Dexter charge if the company uses cost-plus pricing based on total cost?

$946.

$880.

$1,000.

$1,210.

None of these.