Galla Inc. operates in a highly competitive market where the market price for its product is $170 per unit. Galla desires a $15 profit per unit. Galla expects to sell 5,000 units. Additional information is as follows:

Variable product cost per unit	$	15
Variable administrative cost per unit		10
Total fixed overhead		45,000
Total fixed administrative		18,000

Using target costing, what is the target cost?

Multiple Choice

• $135.00

• $160.00

• $130.00

• $145.00

• $155.00