Relevant information for decision making with a Focus on pricing decision

Illinois Company has budgeted the following costs for the production of its only product: Direct Materials $35,000 Direct Labor 25,000 Variable indirect production costs 30,000 Fixed indirect production costs 15,000 Variable selling and administrative costs 7,500 Fixed selling and administrative costs 12,500 Total Costs $125,000 Illinois Company has a target profit of $40,000. The company will produce 1,000 units. The market price is $160 per unit. What is the target cost per unit? O A. $165 O B. $120 O C. $40 O D. $125