The management of Rademacher Corporation is considering introducing a new product--a compact lawn blower. At a selling price of $30 per unit, management projects sales of 40,000 units. The lawn blower would require an investment of $650,000. The desired return on investment is 22%.

The desired profit according to the target costing calculations is:

• $1,057,000

• $1,200,000

• $264,000

• $143,000