Broome Industries, Inc. builds a part for industrial equipment. The marketing director has determined that sales are dwindling for the firm's products because of aggressive pricing by competitors. Broome industries sells the product for $850 whereas the competition's comparable part is selling in the $775 range. The marketing director has determined that a price drop to $735 is necessary to regain market share and monthly sales of 2,000 units. Data based on sales of 2.000 units is as follows: Budgeted Amount Actual Amount Cost Direct materials (sheet metal) 12,000 sq.ft. 15,000 sq.ft. $28.00 per sq.ft. Direct labor 5,600 hrs. 6,000 hrs. 34.00 per hour Machine setups 3.500 hrs. 3,800 hrs. 60.00 per hour Mechanical assembly 4,800 hrs. 4,500 hrs. 35.00 per hour Problem 4-2 If a profit per unit of 40% is desired, the target cost would be O $525.00 O $44100 $465.00 $294.00