WWL Ltd. has a target before-tax profit of $200,000. At the planned sales volume for each of its products, the variable and fixed costs are $2,000,000 and $400,000, respectively. All fixed costs are common to all products. If the selling price of one of the products is $13 per unit, and the unit has allocated to it fixed costs of $2 per unit, what is the target variable cost (to the nearest cent) to make its average mark-up over full costs?
a. $9.00
b. $9.80
c. $10.00
d. $10.15