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 $820, and sales volume averages 32,800 units per year. Recently, Float's major competitor lowered the price of the equivalent part to $670. 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 32,800 Units
	Standard Cost	Actual Quantity	Actual Cost
Materials	$ 6,664,000		$ 7,144,000
Direct labor	2,280,000		2,184,000
Indirect labor	3,272,000		3,080,000
Inspection (hours)		3,400	550,000
Materials handling (number of purchases)		73,400	401,900
Machine setups		5,000	1,505,000
Returns and rework (number of times)		860	96,700
Total			$ 14,961,600

The target cost for maintaining current market share and profitability is (round to nearest cent):

Multiple Choice

• $376.15.
• $306.15.
• $326.66.
• $300.15.

• $370.15.