WellminusBread

Grain Company is a

priceminustaker

and uses target pricing. The company has just done an analysis of its revenues, costs, and desired profits and has calculated its target full product cost. Assume all products produced are sold. Refer to the following information:

Target full product cost	$520 comma 000520,000	per year
Actual fixed cost	$ 250 comma 000$250,000	per year
Actual variable cost	$ 2$2	per unit
Production volume	151 comma 000151,000	units per year

Actual costs are currently higher than target full product cost. Assuming that fixed costs cannot be reduced, what is the target variable cost per unit? (Round your answer to the nearest cent.)

A. $ 2.00$2.00

B. $ 1.79$1.79

C. $ 1.66$1.66

D. $ 3.44