Mathematics · Target Costing

A company is designing a component with a target selling price of $180 per unit and requires a profit margin of 25% on the selling price. The direct labour cost is $35 per unit and variable overheads are $15 per unit. The product requires a rare earth metal, and for every 1 unit produced, 0.8 kg must remain in the final product after a 20% shrinkage loss during manufacturing (meaning input needed = 0.8 / 0.8 = 1 kg). What is the maximum target cost per kg the company can afford to pay for this metal?