& Exit Sub Happy Voyage Inc. manufactures a variety of parts for boating. The parts sell for $940, and sales volume averages 33,400 units per year. Recently, Happy Voyage's major competitor lowered the price of the equivalent part to $730. The market was very competitive, and Happy Voyage realized it had to meet the new price or lose significant market share. The controller assembled the following data for the most recent year Cost and Usage for production of 33,400 Units Standard Actual Cost Quantity Actual Cost Materials $ 6,670,000 $ 7,200,000 Direct labor 2,286,000 2,200,000 Indirect labor 3,278,000 3,300,000 Inspection (hours) 4,000 500,000 Materials handling number of purchases) 73,700 400,000 Machine setups 5,300 1,505,600 Returns and rework (number of times) 980 97,300 Total $15,202,900 (a) Calculate the target cost for maintaining current market share and profitability fround to two decimal places). Please show all your work (6 marks) (b) How should the company attempt to reduce the cost to meet the new target? Suggest at least two tecniques/strategies. 2 marks)