Seemore Company manufactures binoculars. The actual costs for 2013 and 2014 were as follows: 2013 2014 Direct materials: Plastic case Lens set $8.00 $7.60 34.00 34.40 Direct labor 64.00 (1.6 hours) 60.00 (1.5 hours) Indirect manufacturing costs: Variable 16.00 14.20 Fixed 4.00 (100,000 units) 3.80 (120,000 units) Beginning in 2014, Seemore implemented a continuous improvement program that required a first-year cost reduction target of a 7 percent reduction of the 2013 base. Seemore's continuous improvement target for plastic cases in 2014 was: A. $7.44 B. $8.80 OC. $7.60 D. $8.00