Can I get some assistance with this
Bowman Specialists Inc. {RSI} manufactures specialized equipment for polishing optical lenses. There are Mo modelsone {t25} principally used for ne eyewear and the other [A1OJ 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 $ 3.29 $23.29 $ 5.25 $47.99 $41.99 $21.99 per per per per per per part hour part setup hour hour BSI currently sells the A1D model for $5,330 and the A25 model for $1,935. Manufacturing costs and activity usage for the two products follow: 919 Direct materials $142.?6 Number of parts 125 Machine-hours ?.2 Inspection time 1.49 Packing time 3.9% Setups 33 A25 $63.44 99 4.99 9.99 9.49 19 Requlred: 1. Calculate the product cost and product margin for each product. 2. A new competitor has entered the market for lens-polishing equipment with a superior product at signicantly lower prices. $2.385 for the A1D model and $1,860 for the A25 model. To try to compete, BSI has made some radical improvements in the design and manufacturing of its two products. The materials costs and activity usage rates have been decreased signicantly, as follows: A 19 11-25 Direct materials $36.65 $413.45 Number of parts 118 89 Hachinehou rs "f . a 2. 3 Inspection time 1.4 9.?!) Packing time 8.82 9.28 Setups 19 19 2-a. Calculate the total product costs with the new activity usage data. 2-b. Can BSI make a positive gross margin with the newI costs, assuming that it must meet the price set by the new competitor? 4. What cost management method might be useful to BSI at this time