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Clinton Corp. is a manufacturer of equipment used in motorcycles production. It currently produces a product with 15 parts redesign has reduced the number of

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Clinton Corp. is a manufacturer of equipment used in motorcycles production. It currently produces a product with 15 parts redesign has reduced the number of 5.Then current activity capacity and demand for the 15 part configuration and expected activity demand for the 5 configuration are provided below: Materials usage has a rate of $4 per part and no fixed costs. Assembly has a rate of $15 per labor hour with no fixed component. Purchasing requires clerks that can process 5000 purchase orders. Each clerk earns $35,000 per year. There is also a $2 per order processing cost. The product sells for $45 and 50,000 units will be produced. Required: a. What is the total cost savings from the new design? b. What is the new sales price if the cost savings are passed on to the customer

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