23 6 pts Broome Industries, Inc. builds a part for industrial equipment. The marketing director has determined that sales are dwindling for the firm's products because of aggressive pricing by competitors. Broome industries sells the product for $850 whereas the competition's comparable part is selling in the $775 range. The marketing director has determined that a price drop to $735 is necessary to regain market share and monthly sales of 2,000 units. Data based on sales of 2,000 units is as follows: Direct materials (sheet metal) Direct labor Machine setups Mechanical assembly Problem 4-1 The current cost per unit is $452.50 $735.00 $775.00 5504,75 Budgeted Amount Actual Amount 12,000 sq.ft. 15,000 sq.ft. Cost $28.00 per sq.ft. 5,600 hrs. 6.000 hrs 34.00 per hour 3,500 hrs 3,800 hrs 60.00 per hour 4,800 hrs. 4,500 hrs 35.00 per hour