Your friend Rashid wants to start a new business and has requested you to help him out in pricing his product. His invested capital is $7000, and he anticipates that the average cost of producing 500 units of his product is $100. He wants at least a 10% return on invested capital. On hearing this, you immediately ask him to use the targeted rate of return method for pricing. Based on this method, what price would ask him to set for his product?

1. 100

2. 140

3. 104

4. 500