Rush Industries, Inc. builds parts for large automated heavy equipment. The Vice President for Marketing has determined that sales are dwindling for the firm's products because of aggressive pricing by competitors. Rush Industries sells the product for $775 whereas the competition's comparable part is selling in the $650 range. The VP for Marketing has determined that a price drop to $625 is necessary to regain market share and annual sales of 1,200 units. Data based on sales of 1,200 units is as follows: Budgeted Amount Actual Amount Cost Direct materials (sheet metal) 8,000 sq.ft. 10,000 sq.ft. $9.66 per sq.ft. $33.60 per Direct labor 4,800 hrs. 5,000 hrs. hour Machine setups 2,600 hrs. 2,800 hrs. $42.00 per hour Mechanical assembly 3,200 hrs. 3,600 hrs. $34.00 per hour Q. If a profit per unit of 40% is desired, the target cost would be O $465.00 $375.00 Direct labor 4,800 hrs. 5,000 hrs. $33.60 pe hou Machine setups 2,600 hrs. 2,800 hrs. $42.00 pe hou Mechanical assembly 3,200 hrs. 3,600 hrs. $34.00 pe hou Q. If a profit per unit of 40% is desired, the target cost would be $465.00 $375.00 $250.00 O $345.00