TwoShaft Inc. manufactures a wide variety of parts for recreational boating, including boat engines. The component is purchased by OEM (Original Equipment Manufacturers) such as Mercury and Honda, for use in the larger and more powerful outboards. The units sell for $660, and sales volume averages 32,000 units per year. Recently, TwoShaft's major competitor lowered the price of the equivalent part to $600. The market was very competitive, and TwoShaft realized it had to meet the new price or lose significant market share. The controller assembled the following data for the most recent year:

Cost and Usage for Production of 32,000 Units

	Standard Cost	Actual Quantity	Actual Cost
Materials	$6,656,000		$7,136,000
Direct labor	2,272,000		2,176,000
Indirect labor	3,264,000		3,072,000
Inspection (hours)		2,600	546,000
Materials handling (number of purchases)		73,000	401,500
Machine setups		4,600	1,504,200
Returns and rework (number of times)		700	95,900
Total			$14,931,600

The target cost for maintaining current market share and profitability is (round to nearest cent):

Group of answer choices

$417.12.

$406.61.

$396.61.

$466.61.

$390.61.