Pedrotti Corporation would like to use target costing for a new product it is considering introducing. At a selling price of $29 per unit, management projects sales of 40,000 units. The new product would require an investment of $400,000. The desired return on investment is 16%. The target cost per unit is closest to: (Do not round intermediate calculations.)

$36.25

$2.90

$27.40

$29.00