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 005 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 of10,000 chairs. Cost data based on sales of10,000 chairs: Budgeted Actual Quantity 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 If the prot per unit is maintained, the target cost per unit is