TMG Produces and Sells Yachts for Wealthy Customers Assume That All the Preceding Costs Are Avoidable

TMG produces and sells yachts for wealthy customers. TMG's accountants produced the data shown below as a basis for client negotiations for the coming year: $\begin{array}{lccc}&\underline{\text { Big Winner}}&\underline{\text { Sport Star }} &\underline{\text {CEO }}\\\text { Basic yacht } & \$ 600 & \$ 600 & \$ 600 \\\text { Customisation costs } & 300 & 500 & 200 \\\text { Marketing costs } &\underline{ 100 }&\underline{ 400} & \underline{300 }\\\quad \text { Total costs } &\underline{ \$ 1,000} & \$ \underline{\$ 1,500}&\underline{ \$ 1,100 }\end{array}$

Assume that all the preceding costs are avoidable. The company will incur an additional $800 in unavoidable costs during the coming year. TMG's managers want to achieve a profit margin of 80% based on total costs. Suppose TMG allocates unavoidable corporate costs based on total avoidable costs. The selling price of Sport Star's yacht will be:

A) $3,300
B) $1,467
C) $1,833
D) $2,200