Float Incorporated manufactures a wide variety of parts for recreational boating, including boat engines. The component is purchased by OEM (Original Equipment Manufacturers) such as Mercury and Honda, for use in the larger and more powerful outboards. The units sell for $760, and sales volume averages 32,500 units per year. Recently, Float's major competitor lowered the price of the equivalent part to $640. The market was very competitive, and Float realized it had to meet the new price or lose significant market share. The controller assembled the following data for the most recent year: Cost and Usage for Production of 32,500 Units Materials Direct labor Indirect labor Inspection (hours) Materials handling (number of purchases) Machine setups Returns and rework (number of times) Total Standard Cost Actual Quantity Actual Cost $ 6,661,000 2,277,000 3,269,000 $ 7,141,000 3,100 73,250 4,850 800 2,181,000 3,077,000 548,500 401,750 1,504,700 96,400 $ 14,950,350 The target cost for maintaining current market share and profitability is (round to nearest cent):