Target costing The marketing department at Cleveland Furniture Mfg. has an idea for a new product that is expected to have a six-year life cycle. After conducting market research, the company found that the product could sell for $800 per unit in the first four years of life and for $650 per unit for the last two years. Unit sales are expected to be as follows:

Year 1	4,400
Year 2	3,960
Year 3	5,170
Year 4	5,500
Year 5	1,650
Year 6	1,100

Per-unit variable selling costs are estimated at $140 throughout the products life; total fixed selling and administrative costs over the six years are expected to be $3,700,000. Cleveland Furniture Mfg. desires a profit margin of 15 percent of selling price per unit. a. Compute the life cycle target cost to manufacture the product. (Round to the nearest cent.) Note: Round your answer to two decimal places (i.e., round $2.4555 to $2.46). $Answer per unit b. If the company expects the product to cost $430 to manufacture in the first year, what is the upper bound for manufacturing cost in the following five years? Note: Round your answer to two decimal places (i.e., round $2.4555 to $2.46). $Answer per unit