MaxiDrive manufactures a wide variety of parts for recreational boating, including a gear and driveshaft part for high-powered outboard boat engines. Original equipment manufacturers such as Mercury and Honda purchase the components for use in large, powerful outboards. The part sells for $670, and sales volume averages 29,000 units per year. Recently, MaxiDrives major competitor reduced the price of its equivalent unit to $594. The market is very competitive, and MaxiDrive realizes it must meet the new price or lose significant market share. Management has begun paying closer attention to costs and has reconfirmed the current existing standard costs. The controller then assembled the following cost and usage data for the most recent year for MaxiDrives production of 29,000 units:

	Budgeted Quantity	Budgeted Cost	Actual Quantity	Actual Cost
Direct materials		$ 6,900,000		$ 7,400,000
Direct labor		2,660,000		2,825,000
Indirect labor		2,660,000		2,600,000
Inspection (hours and cost)	1,080	380,000	1,400	390,000
Materials handling (number of purchases and cost)	4,700	700,000	3,850	685,000
Machine setups (number and cost)	1,800	950,000	1,900	925,000
Returns and rework (number of times and cost)	380	120,000	580	170,000
		$ 14,370,000		$ 14,995,000

1. Calculate the target cost for maintaining current market share and profitability. (Round your answer to 2 decimal places.)