1) Coral Gables Electronics is considering reorganizing its plant into manufacturing cells. The company has the following information: Before the change After the change Total annual sales $872,491 $1,036,902 Costs as percentage of sales: Direct materials 11.09% 9.36% Direct labor 5.68% 5.41% Manufacturing support costs 9.12% 8.47% Work-in-process inventory $305,974 $264,948 Inventory carrying costs are estimated to be 12.39% per year. As a result of the layout reorganization, what amount of annual change is projected . . . 1. from carrying reduced levels of work-in-process inventory? Answer 2. for incremental manufacturing costs? Answer 3. in total benefits? Answer 4) Maynotfloat Boat Co. in Highland Beach has the following information as part of its target costing process: Customer Importance Rating by Category Category Importance Safety 108 Comfort & convenience 137 Economy 36 Styling 96 Performance 123 Total 500 Target Cost by Function Group Function Group Target Cost Exterior construction $ 335,275 Interior finish $ 584,391 Propulsion system $ 271,306 Stability systems $ 129,814 Food storage & preparation $ 179,214 Total $ 1,500,000 Category Exterior construction Interior buildout Propulsation system Stability systems Food storage & prep Safety 13.0% 2.2% 4.3% 2.1% 21.6% Comfort & convenience 2.7% 19.2% 5.5% 27.4% Economy 2.2% 3.6% 0.7% 0.7% 7.2% Styling 5.8% 13.4% 19.2% Performance 4.9% 14.8% 4.9% 24.6% Converted component ranking (a) Using the information above, prepare a schedule similar to Exhibit 8-10 and recommend which function group to enhance and which function group to reduce cost