Leon Production Produces Steel Rivets for the Shipbuilding Business

Leon Production produces steel rivets for the shipbuilding business. Leon uses the target pricing approach. The company's objective is to achieve gross profit equal to 25% of selling price. Other data are shown below: What must the company do to achieve their profit goal? (Please round all amounts to the nearest cent.)

A) Reduce production cost from $112 to $110.00.
B) Reduce production cost from $112 to $97.50.
C) Reduce production cost from $112 to $101.25.
D) Reduce production cost from $112 to $99.00.