A-1 Sports Vehicles Manufacturing Produces a Specialty Racing Bicycle

A-1 Sports Vehicles Manufacturing produces a specialty racing bicycle. There is stiff foreign competition, and the company is forced to pursue target pricing. The competitive market price of the bicycle is $2,000. Currently the manufacturing cost for this product at A-1 is $1,550 and the associated non-manufacturing costs are $270. A-1's owners insist on achieving a profit of 12% of sales price.
- What amount is the target cost? (Please round all amounts to the nearest whole dollar.)

A) $1,820
B) $1,550
C) $2,000
D) $1,760