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 $610, and sales volume averages 25,000 units per year. Recently, MaxiDrive's major competitor reduced the price of its equivalent unit to $550. The market is very competitive, and Maxi-Drive realizes it must meet the new price or lose significant market share. The controller has assembled these cost and usage data for the most recent year for MaxiDrive's production of 25,000 units Budgeted Budgeted Actual Actual Quantity Cost Quantity Cost $ 6,500,000 2,500,000 2,500,000 S 7,000,000 Materials Direct labor Indirect labor Inspection (hours and cost) Materials handling (number of purchases and cost) Machine setups (number and cost) Returns and rework (number of times and cost) 2,625,000 2,400,000 920 300,000 1,000 350,000 3,500 500,000 3,450 485,000 1,400 750,000 1,500 725,000 300 80,000 500 130,000 $13,130,000 $13,715,000 Required 1. Calculate the target cost for maintaining current market share and profitability (Do not round intermediate calculations. Round your answer to two decimal places.) References eBook & Resources Difficulty: 2 Medium Learning Objecti management O Type here to search