E21-26. Target Costing Portland Equipment Company wants to develop a new log-splitting machine for rural homeowners Market research has determined that the company could sell 6,000 log-splitting machines per year at a retail price of $850 each. An independent catalog company would handle sales for an annual fee of $6,000 plus $59 per unit sold. The cost of the raw materials required to produce the log-splitting ma- chines amounts to $95 per unit. Required If company management desires a return equal to 10 percent of the final selling price, what is the target unit cost