Robinson Inc. has determined that its new fireplace heat shield would gain widespread customer acceptance if the company could price it at or under $100. Anticipated labor hours and costs for each unit of the new product are:

Direct materials cost $13

Direct labor cost

Manufacturing labor

Hours 1.5

Hourly labor rate $15

Assembly labor

Hours 1.4

Hourly labor rate $12

Machine hours 2

The company currently uses the following three activity-based cost rates:

Materials handling $1.25 per dollar of direct materials.

Production $4.00 per machine hour

Product delivery $6.00 per unit.

The companys minimum desired profit is 30 percent over total production and delivery cost.

Compute the target cost for the new heat shield and determine if it should be marketed by the company.