A Managerial Accounting Question!

thank you!

h the 36. AirTravel Inc. manufactures a wide variety of parts for commercial aircraft, including airplane engines. The component is purchased by OEM (original equipment manufacturers) such as Boeing, for use in the larger and more powerful outboards. The units sell for $10,000, and sales volume averages 2,000 units per year. Recently AirTravel's major competitor lowered the price of the equivalent part to $9,500. The market was very competitive, and AirTravel realized it had to meet the new price or lose significant market share. The controller assembled the following data for the most recent year Cost and Usage for Production of 2,000 Units Actual uantit Materials Direct labor Indirect labor Inspection (hours) Materials handling Standard Cost S5,000,000 2,000,000 3,800,000 Actual Cost S 7.000,000 2,500,000 3,500,000 1,000 500,000 (number of purchases) Machine setups Returns and rework 50,000 3,000 400,000 2.000,000 (number of times) Total 200 100,000 S16,000.000 Calculate the target cost for maintaining current market share and profitability