Pell uses activity-based costing. Two of Pell's production activities are kitting (assembling the raw materials needed for each computer in one kit) and boxing the completed products for shipment to customers. Assume that Pells spends $4,000,000 per month on kitting and 25,000,000 per month on boxing. Pell allocates the following:

Kitting costs based on the number of parts used in the computer

Boxing costs based on the cubic feet of space the computer uses

Suppse Pell estimates it will use 200,000,000 parts per month and ship products with a total volume of 50,000,000 cubic feet. Assume that each desktop computer requires 150 parts and has a volume of 6 cubic feet. The predertermined overhead allocation rate for kitting is .02 per part and the predertermined overhead allocation rate for boxing is .50 per cubic feet. The kitting and boxing costs assigned to one computer are $3.00 abd $3.00 respectively.

Pell contracts with its suppliers to pre-kit certain compononent parts before delivering them to Pell. Assume this saves $1,000,000 of the kitting cost and reduces the total number of parts by 100,000,000 (because Pell considers each pre-kit as one part). If a desktop now uses 175 parts, what is the new kitting cost assigned to one desktop?