MaxiDrive manufactures a wide variety of parts for recreational boating, including a gear and driveshaft part for highpowered outboard boat engines. Original equipment manufacturers such as Mercury and Honda purchase the components for use in large, powerful outboards. The part sells for $625, and sales volume averages 26,000 units per year. Recently, MaxiDrive's major competitor reduced the price of its equivalent unit to $555. The market is very competitive, and MaxiDrive realizes it must meet the new price or lose signicant market share. Management has begun paying closer attention to costs and has reconrmed 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 26,000 units: Budgeted Actual Quantity Budgeted Cost Quantity Actual Cost Direct materials $ 5,666,666 $ 7,166,666 Direct labor 2,546,666 2,675,666 Indirect labor 2,546,666 2,456,666 Inspection (hours and cost) 966 326,666 1,166 366,666 Materials handling (number of purchases and cost) 3,866 556,666 3,556 535,666 Machine setups (number and cost) 1,566 866,666 1,666 775,666 Returns and rework (number of times and cost) 326 96,666 526 146,666 st. 13,443,636 $ 14,635,666 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.) _:1