Bowman Specialists Inc. (BSI) manufactures specialized equipment for polishing optical lenses. There are two models?one (A-25) principally used for fine eyewear and the other (A-10) for lenses used in binoculars, cameras, and similar equipment.

The following table shows the manufacturing cost of each unit is calculated, using activity-based costing, for these manufacturing cost pools.

Cost Pools Materials handling Manufacturing supervision Assembly Machine setup Inspection and testing Packaging Allocation Base Number of parts Hours of machine time Number of parts Each setup Logged hours Logged hours Costing Rate $ 3.90 $24.60 $ 5.85 $48.40 $62.00 $32.00 per per per per per per part hour part setup hour hour Direct materials Number of parts Machinehours Inspection time Packing time Setups A10 $146.76 132 9.30 2.10 1.25 24 A25 $77.44 103 6.20 1.15 0.62 12 \fComplete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 4 Calculate the product cost and product margin for each product. (Round your answers to 2 decimal places.) A-10 A-25 Product cost Product margin Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 4 What cost management method might be useful to BSI at this time? Target costing O Activity-based costing O Life-cycle costing O Kaizen costing