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	$	2.50	per part
Manufacturing supervision	Hours of machine time	$	14.81	per hour
Assembly	Number of parts	$	3.35	per part
Machine setup	Each setup	$	56.55	per setup
Inspection and testing	Logged hours	$	45.55	per hour
Packaging	Logged hours	$	19.55	per hour

LCI currently sells the B-13 model for $2,000 and the F-32 model for $1,500. Manufacturing costs and activity usage for the two products are as follows:

	B-13				F-32
Direct materials	$	164.55			$	75.64
Number of parts		161				121
Machine hours		7.95				4.21
Inspection time		1.80				0.90
Packaging time		0.95				0.55
Setups		4				3

If the market price for B-13 and F-32 are reduced to $1,920 and $1,375 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)	$	173.00			$	207.00
B)	$	1,471.00			$	212.00
C)	$	411.00			$	943.00
D)	$	1,471.00			$	943.00
E)	$	411.00			$	509.00