Symphony Sound is designing a portable recording studio to be sold to consumers. The team developing the product includes representatives from marketing, engineering, and cost accounting. The recording studio will include sound-canceling monitor headphones, audio recording and enhancement software, several instrumental and vocal microphones, and portable folding acoustic panels. With this set of features, the team believes that a price of $4,600 will be attractive in the market place. Symphony Sound seeks to earn a per unit profit of 25 percent of selling price.

(a) Calculate the target cost per unit.

Target cost

$ per unit