Quality Chairs Inc. (QC) manufactures chairs for industrial use. Laura Winters, the Vice President for Marketing at QC, concluded from market analysis that sales were dwindling for QC's standard three-foot chair due to aggressive pricing by competitors. QC's chairs sold for $890 whereas the competition's comparable chair was selling for $750. Winters determined that a price drop to $750 would be necessary to regain market share and reach a targeted annual sales level of 11,700 chairs. Cost data based on sales of 11,700 chairs:

	Budgeted Quantity			Actual Quantity			Actual Cost
Direct materials (board feet)		89,700			81,200		$	1,258,500
Direct labor (hours)		72,200			74,625			876,700
Machine hours (hours)		12,250			12,100			251,700
Finishing and packing (hours)		7,350			7,250			126,700

The current cost per unit is:

A) $215.

B) $265.

C) $365.

D) $415.

E) $440.