Float Incorporated manufactures a wide varlety of parts for recreational boating, ineluding boat engines. The component is purchased by OEM (Origina Equipment Manufacturers) such as Mercury and Honda, for use in the larger and more powerful outboards. The units sell for $700, and sales volume. averages 32,200 units per year. Recently. Float's major competitor lowered the price of the equivalent part to $610. 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: The target cost for maintaining current morket share ond profitobility is (round to nearest cent