Lens Care Inc. (LCI) manufactures specialized equipment for polishing optical lenses. There are two models - one mainly used for fine eyewear (F-32) and another for lenses used in binoculars, cameras, and similar equipment (B-13). The manufacturing cost of each unit is calculated using activity-based costing, using the following manufacturing cost pools:

Cost Pools	Allocation Base	Costing Rate
Materials handling	Number of parts	$	4.40	per part
Manufacturing supervision	Hours of machine time	$	15.00	per hour
Assembly	Number of parts	$	4.30	per part
Machine setup	Each setup	$	57.50	per setup
Inspection and testing	Logged hours	$	46.50	per hour
Packaging	Logged hours	$	20.50	per hour

LCI currently sells the B-13 model for $6,275 and the F-32 model for $6,820. Manufacturing costs and activity usage for the two products are as follows:

	B-13				F-32
Direct materials	$	165.50			$	76.40
Number of parts		180				140
Machine hours		8.90				4.40
Inspection time		3.70				2.80
Packaging time		1.90				1.50
Setups		6				5

If the market price for B-13 and F-32 are reduced to $6,195 and $6,695 respectively, and Lens Care wants to maintain market share and profitability, what is the target cost for B-13 and F-32 (round to nearest whole dollar)?

	B-13				F-32
A)	$	1,043.00			$	948.00
B)	$	2,341.00			$	953.00
C)	$	1,281.00			$	1,684.00
D)	$	2,341.00			$	1,684.00
E)	$	1,281.00			$	1,250.00