On Point, Inc., is interested in producing and selling a deluxe electric pencil sharpener. Market research indicates that customers are willing to pay $40 for such a sharpener and that 20,000 units could be sold each year at this price. the cost to produce the sharpener is currently estimated to be $34. (Round your answer to 2 decimal places.) If on Point requires a 17 percent return on sales to undertake production of a product, what is the target cost for the new pencil sharpener? If a competitor sells basically the same sharpener for $36, what would On Point's target cost be to maintain a 17 percent return on sales