Regal Kitchens, Inc Regal Uses the Following Activity-Based Costs The Company's Desired Profit Is 25 Percent Over Total Production

Regal Kitchens, Inc., is considering the production of a new kitchen vent system. The Marketing Department has determined that there would be demand for the product at or below a selling price of $150 per unit. Anticipated unit costs are as follows:
$\begin{array}{|l|l|}\hline \text { Direct materials } & \$ 26.00 \\\hline \text { Direct labor costs } & \\\hline \text { Manufacturing } & \\\hline \text { Hours } & 2.2 \\\hline \text { Hourly rate } & \$ 12.00 \\\hline \text { Assembly } & \\\hline \text { Hours } & 2.5 \\\hline \text { Hourly rate } & \$ 10.00 \\\hline \text { Machine hours } & 2 \\\hline\end{array}$ Regal uses the following activity-based costs:
$\begin{array}{|l|l|}\hline \text { Materials handling } & 120 \% \text { of direct material } \\\hline \text { Production } & \$ 7.00 \text { per machine hou } \\\hline \text { Shipping and handling } & \$ 10 \text { per unit } \\\hline\end{array}$ The company's desired profit is 25 percent over total production and shipping costs.
Calculate the target cost for this product and determine whether or not it should be produced.