Mollys Mittens is considering two new products. Research shows that 12,000 pairs of wool mittens will sell at $18 per pair and will require a $20,000 investment. It also shows that 16,000 pairs of cotton mittens will sell at $19 per pair and will require a $28,000 investment. Mollys requires a 30% rate of return on all products. Which product has a lower target cost? By how much?

A : The wool mittens have a lower target cost than the cotton mittens by $0.97.

B : The wool mittens have a lower target cost than the cotton mittens by $1.03.

C : The cotton mittens have a lower target cost than the wool mittens by $0.53.

D : The cotton mittens have a lower target cost than the wool mittens by $0.03.