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Category Estimated Cost Cost Driver Use of Cost Driver Unit level :5 27,000 Number of units ZM: 2,400 units: DS: 9,600 units Batch level 50,000
Category Estimated Cost Cost Driver Use of Cost Driver Unit level :5 27,000 Number of units ZM: 2,400 units: DS: 9,600 units Batch level 50,000 Number of setups m: 25 setups: DS: 25 setups 25 Product level 90,000 Number of TV commercials 2M: 15: DS: 10 points Facility level 300,000 Number of machine hours ZM: 500 hours: D5: 1,000 hours Total $467,000 I egok Bismarck's facility has the capacity to operate 4,500 machine hours per month. if\". Required R r e Hence; 3. Compute the cost per unit for each product. I). The current market price for products comparable to Model ZM is $200 and for DS is $86. If Bismarck sold all of its products at the market prices, what was its profit or loss for the previous month? c. A market expert believes that Bismarck can sell as many cameras as it can produce by pricing Model ZM at $196 and Model DS at $84. Bismarck would like to use those estimates as its target prices and have a profit margin of 30 percent of target prices. What is the target cost for each product? Complete this questlon by enterlng your answers In the tabs below. Required A Required 3 Required C Compute the cost per unit for each product. (Round intermediate calculations and nal answers to 2 decimal places.) __l__= __Iml__ Required A Required B Required C The cunent market price for products comparable to Model ZM is $1 the market prices, what was its prot or loss for the previous montl Loss amounts should be indicated by a minus sign.) Model ZM Profit Mode: 03 prot _ A market expert believes that Bismarck can sell as many cameras at $84. Bismarck would like to use those estimates as its target pl What is the target cost for each product? (Round your answers to Target cost I unit 15 137.20 $ 58.80
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