Illinois Company has budgeted the following costs for the production of its only product: Direct Materials- 35,000

Direct Labor- 25,000

Variable indirect production costs-30000

Fixed indirect production costs- 15000

Variable selling and administrative costs- 7500

Fixed selling and administrative costs- 12500

Total Costs- 125,000 Illinois Company has a target profit of $40,000. The company will produce 1,000 units. The market price is $160 per unit. What is the target cost per unit? A) $120 B) $40 C) $165 D) $125