80 Target Costing Laser Cast Int. manufactures color laser printers. Model 320 presently sells for $550 and has a product cost of $440, as follows: Direct materials $320 Direct labor Factory overhead Total $440 It is estimated that the competitive sailing price for color laser printers of this type will drop to 4520 next year Laser Cast has established a torpet cost to maintain its historical marv percentage on prouct cost Engineers have provides the following cost reduction Ideas 1. Purchase a plastic printer cover with snap on assembly, rather than with screws. This will reduce the amount of direct labor by 2 minutes per unit. 2. Add an inspection step that will add six minutes per unit of direct labor but reduce the materials Corby 511 per unit 3. Decrease the cycle time of the injection molding machine from foar minutes to three minutes per part Thirty percent of the Grect labor and 45% of the factory overhead are related to runting linjection molding machines The direct laboris $34 per hour 2. Determine the carpet cost for Model 120, assuming that the historical markus on product cost and selling price are maintained. Found your first server to two decimal places perunt b. Dutermine the required cost reduction Enter as a positive sumber. Round your talangkar bo bwo Gecoat place. per un Evaluate the three engineeong improvements together to determine the secured cost reduction (uit) cat be achterteral amounts as positive numbers. De not round Interim calculation but round your fears to two decimal places 1 Direct labor reduction 2. Additional inspection 2. Injection molding productivity improvement