Choice "B" is correct. Since a 15% profit is desired, the cost of $990,000 would be 85% of sales. (Remember that profit + cost.) Thus, sales are $1,164,700 ($990,000 ÷ 85%). $1,164,700 ÷ 500 units equals $2,329 per unit.Choice "c" is incorrect. The 15% margin should be based on sales, not on costs. Choice "d" is incorrect. $1,980 is the cost per unit, not the selling price per unit. In order to earn the desired 15% profit, the selling price would have to exceed this amount.Choice "a" is incorrect. If a profit margin of 15% is to be achieved, the target price cannot be less than the cost per unit of $1,980.