(1.2 × €25; 0.9 × €25) 30.00 22.50 Total indirect manufacturing costs 265.70 174.60 Total manufacturing costs €646.90 €437.70 Target cost €680.00 €390.00 PREV is €33.10 below its target cost. However, PREV is €47.70 above its target cost. It appears that Combrai Informatique will have major problems competing with the foreign printer costing €390.