Screen Industries manufactures two products: Alpha and Beta. Both products are produced on the same assembly lines and packaged with 20 units of product per package. The predicted sales are 320,000 packs of Alpha and 400,000 packs of Beta. The budgeted costs for the coming year are as follows.

Each product uses 50 percent of the variable material costs. The other costs are allocated as follows: variable costs based on machine time (Alpha 160,000 hours and Beta 80,000 hours) and fixed costs allocated evenly to both products. The management of Screen Industries desires an annual profit of $160,000 per product.

Required
a. Calculate the total cost for each product.
b. What price should be charged for each product?