Eastern Auto Supply, Inc., produces and distributes auto supplies. The company is anxious to enter the rapidly growing market for long-life batteries that is based on lithium technology. Management believes that to be fully competitive, the price of the new battery that the company is developing cannot exceed $66. At this price, management is confident that the company can sell 46,000 batteries per year. The batteries would require an investment of $3,000,000, and the desired ROI is 24%.

Compute the target cost of one battery. (Do not round intermediate calculations.)

Sales $3,036,000

Less desired profit 720,000

Target cost for 46,000 batteries $2,316,000

Target cost per battery