Campbell 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 competitic 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:

$\backslash$table$[[$Direct Cost per Unit,Model Dia,amond $($D$),$Model Gold $($G$)],[$Direct materials,$$19\mathrm{.}4l,$per unit,$$9\mathrm{.}30$ per unit$],[$Direct labor,$$\frac{19\mathrm{.}00}{?}$ hour $2\mathrm{.}00,$hours production time,$$\frac{19\mathrm{.}00}{?}$ hour $1\mathrm{.}00$ hour production time$],[$Category$,$Estimated Cost,Cost Driver,Use of Cost Driver$],[$Unit level,$$341,700,$Number of units,D: $10,000$ units; G: $41,000$ units$],[$Batch level,$1,116,000,$Number of setups,D: $108$ setups; G: $202$ setups$],[$Product level,$740,000,$Number of TV commercials,D: $5$; G: $15],[$Facility level,$405,000,$Number of machine hours,D: $2,400$ hours; G: $2,100$ hours$],[$Total$,$$$2,602,700,,]]$

The market price for office chairs comparable to Model Diamond is $$122$ and to Model Gold is $$73.$

Required

a$.$ Compute the cost per unit for both products.

b$.$ Dan Barker, the chief engineer, told Ms$.$ Silva that the company is currently making $93$ units of Model Diamond per batch and $203$ units of Model Gold per batch. He suggests doubling the batch sizes to cut the number of setups in half, thereby reducing the se 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.$)$

$\backslash$table$[[$Type of Product,Cost per Unit,$],[$a$.$ Model Diamond,,$],[$a$.$ Model Gold,,$],[$b$.$ Model Diamond,$$,257\mathrm{.}91],[$b$.$ Model Gold,$$,257\mathrm{.}92]]$