Economy Builders thinks there is a market for a new portable saw. Economy's research department has surveyed prices that are currently sold on the market. Economy believes that $80 would be about the right selling price. At this price they believe they can sell 90,000 new saws over the products life cycle. It will cost approximately $1,000,000 to design and develop the saw. Economy has a target profit of 20% of sales.
Determine the per unit target cost to manufacture, sell, distribute, and service the saw.