Broome Industries, Inc. builds a part for industrial equipment. The marketing director has determined that sales are dwindling for the firm's products because of aggressive pricing by competitors. Broome industries sells the product for $850 whereas the competition's comparable part is selling in the $775 range. The marketing director has determined that a price drop to $735 is necessary to regain market share and monthly sales of 2,000 units. Data based on sales of 2,000 units is as follows: Direct materials (sheet metal) Direct labor Machine setups Mechanical assembly Budgeted Amount 12,000 sq.ft. 5,600 hrs. 3,500 hrs. 4,800 hrs. Actual Amount 15,000 sq.ft. 6,000 hrs. 3,800 hrs 4.500 hrs. Cost $28.00 per sq.ft. 34.00 per hour 60.00 per hour 35.00 per hour Problem 4-1 The current cost per unit is O $452.50 $735.00 O $775.00 $504.75