Bismarck Cameras, Inc. manufactures two models of cameras. Model ZM has a zoom lens; Model DS has a fixed lens. Bismarck uses an activity-based costing system. The following are the relevant cost data for the previous month: Direct Cost per Unit Direct materials Direct labor Model ZM $ 45 32 Model DS $ 20 15 Category Unit level Batch level Product level Facility level Total Estimated Cost $ 27,000 50,000 90,000 300,000 $ 467,000 Cost Driver Number of units Number of setups Number of TV commercials Number of machine hours Use of Cost Driver ZM: 2,400 units; DS: 9,600 units ZM: 25 setups; DS: 25 setups ZM: 15; DS: 10 ZM: 500 hours; DS: 1,000 hours Bismarck's facility has the capacity to operate 4,500 machine hours per month. Required a. Compute the cost per unit for each product. b. The current market price for products comparable to Model ZM is $200 and for DS is $86. If Bismarck sold all of its products at the market prices, what was its profit or loss for the previous month? c. A market expert believes that Bismarck can sell as many cameras as it can produce by pricing Model ZM at $196 and Model DS at $84. Bismarck would like to use those estimates as its target prices and have a profit margin of 30 percent of target prices. What is the target cost for each product? Required A Required B Required C Compute the cost per unit for each product. (Round intermediate calculations and final answers to 2 decimal places.) Total Type of Product Model ZM Model DS Direct Materials $ 45.00 20.00 Direct Labor $ 32.00 15.00 Allocated Overhead $ 76.83 + + = $ 153.83 XI + + 26.31 11 61.31 Required A Required B Required C The current market price for products comparable to Model ZM is $200 and for DS is $86. If Bismarck sold all of its products at the market prices, what was its profit or loss for the previous month? (Round intermediate calculations to 2 decimal places. Loss amounts should be indicated by a minus sign.) Model ZM Profit Amount 46 25 Model DS Profit