Recent economic conditions are forcing Mega Corporation to drop its price from P50 to P40 per unit, but the company expects its sales to rise from 600,000 to 750,000 units. The company's current cost of production is P38 per unit. Suppose Mega Corporation would like to maintain a 16% target operating income on its sales revenue. To achieve this target, the company must lower its cost of production by:

Group of answer choices

P6.40 per unit

P33.60 per unit

P2.00 per unit

P4.40 per unit