Adams Chairs, Incorporated makes two types of chairs. Model Diamond is a high$-$end product designed for professional offices. Model Gold is an economical product designed for family use. Jane Silva, the president, is worried about cut$-$throat price competition in the chairs market. Her company suffered a loss last quarter, an unprecedented event in its history. The company$$s accountant prepared the following cost data for Ms$.$ Silva:

Direct Cost per Unit Model Diamond $($D$)$ Model Gold $($G$)$

Direct materials $ $19\mathrm{.}60$ per unit $$10\mathrm{.}40$ per unit

Direct labor $ $17\mathrm{.}60/$hour $\backslash$times $2\mathrm{.}00$ hours production time $ $17\mathrm{.}60/$hour $\backslash$times $1\mathrm{.}00$ hour production time

Category Estimated Cost Cost Driver Use of Cost Driver

Unit level $ $326,400$ Number of units D: $18,000$ units; G: $33,000$ units

Batch level $812,000$ Number of setups D: $104$ setups; G: $186$ setups

Product level $640,000$ Number of TV commercials D: $5$; G: $15$

Facility level $611,000$ Number of machine hours D: $1,900$ hours; G: $2,800$ hours

Total $ $2,389,400$

The market price for office chairs comparable to Model Diamond is $$117$ and to Model Gold is $$76.$

Required

Compute the cost per unit for both products.

Dan Barker, the chief engineer, told Ms$.$ Silva that the company is currently making $173$ units of Model Diamond per batch and $177$ units of Model Gold per batch. He suggests doubling the batch sizes to cut the number of setups in half, thereby reducing the setup cost by $50$ percent. Compute the cost per unit for each product if Ms$.$ Silva adopts his suggestion.

$($For all requirements, round intermediate calculations and final answers to $2$ decimal places.$)$