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MaxiDrive manufactures a wide variety of parts for recreafional boafing, including a gear and driveshaft part for high-powered outboard boM engines

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MaxiDrive manufactures a wide variety of parts for recreafional boafing, including a gear and driveshaft part for high-powered outboard boM engines. Original equipment manufacturers such as Mercury and Honda pur.ase the components for use in large, powerful outboards. The part sells for $690, and sales volume averages 27,000 uMts per year. Recently, MaxiDrive. major competitor reduced the price of its equivalent unit to $569. The market is very competitive, and MaxiDrive realizes it must meet the new price or lo. significant market share. Management has begun paying closer atte.on to cos. a. has reconfirmed the current exisfing standard cos.. The controller Men assembled the following cost a. usage da. Mr the most recent year for MaxiDrive. produ.on of 27,000 units: 
• Budgeted Quantity Budgeted Cost Actual Quantity Actual Cost :1= 7:6:rria" $ 6,700,000 2,580,880 $ 7,200,008 2,725,088 Indirect labor Inspection (hours and cost) 1,008 2,580,000 3/0,880 1,200 2,500,000 370,088 Materials handling (number of purchases Machine setups (number a. cost) and cost) 4,108 1,608 600,000 850,880 100,000 3,650 1,700 585,000 B25,088 150,088 Returns and rework (number of times and cost) 308 540 $13,750,880 $10,355,088 
Required: 1. Calculate the target cost for maintaining current market share and profitability. (Do not round intermediate calculations. Round your answer to 2 decimal places.)