Case Industries is considering introducing new bearing.The key data is:

Estimated sales quantity - 10,000 bearings per year

$70.00 selling price based on a marketing study of what customers will pay for the new bearing

Case was hoping to sell the bearings at $75.00

Profit Target is 10% of sales

Unit Variable Costs - $50.00

Fixed Costs - $60,000 per year

One-time research and development costs - $200,000

5 Year product life cycle

6A - What are the Target Costs?

6B - What are the Estimated Costs?

6C - Should Case Industries proceed with introducing the new bearing and why?