Oriole Company wants to produce and sell a new flavored water. In order to penetrate the market, the product will have to sell at $ 2 per 12 oz. bottle. The following data has been collected:

Annual sales	40000 bottles
Projected selling and administrative costs	$ 8800
Desired profit	$ 65000

The target cost per bottle is

$ 0.16.

$ 0.22.

$ 0.63.

$ 0.38.