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, MaxiDrive's 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 MaxiDrive's production of 29,000 units:

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, MaxiDrive's 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 MaxiDrive's production of 29,000 units: Budgeted Budgeted Actual Actual Quantity Cost Quantity Cost Direct materials :3 6,966,666 $ 7,466,666 Direct labor 2,660,809 2,825, 999 Indirect labor 2,666,666 2,666,666 Inspection (hours and cost) 1,686 386,666 1,466 396,666 Materials handling (number of purchases and cost) 4,766 766,666 3,856 685,666 Machine setups (number and cost) 1,866 956,666 1,966 925,666 Returns and rework (number of times and cost) 386 126,666 586 176,666 $14,379,999 $14,995,999 Required: 1. Calculate the target cost for maintaining current market share and profitability. (Do not round intermediate calculations. Round your answer to 2 decimal places.) ;|