Review the information in Exhibit 5-4 for PMI. Assume that the sales price of $17 per unit vero Boi osting Se a

‘

same but that the total units to be sold each month increases to 22,000 (from the original proposal of (LO 2) }

20,000 units). (Assume that the only costs that will change are the costs driven by unit-level activities.)

SSS SS sneer =

Required SS How much will this impact the monthly cost-reduction target

a. Indollars?

b. Asa percent of currently feasible costs