(A-25) principally used for fine eyewear and the other (A10) for lenses used in binoculars, cameras, and similar equipment. The following table shows how the manufacturing cost of each unit is calculated, using activity-based costing, for these manufacturin cost pools. BSI currently sells the A10 model for $1,210 and the A25 model for $865. Manufacturing costs and activity usage for the two products follow: Required: 1. Calculate the product cost and product margin for each product. 2. A new competitor has entered the market for lens-polishing equipment with a superior product at significantly lower prices, $1,020 for the A-10 model and $665 for the A-25 model. To try to compete, BSI has made some radical improvements in the design and manufacturing of its two products. The materials costs and activity usage rates have been decreased significantly, as follows: 2-a. Calculate the total product costs with the new activity usage data. 2-b. Can BSI make a positive gross margin with the new costs, assuming that it must meet the price set by the new competitor? 4. What cost management method might be useful to BSI at this time? Calculate the product cost and product margin for each product. Calculate the total product costs with the new activity usage data. What cost management method might be useful to BSI at this time