Franklin Cameras, Incorporated manufactures two models of cameras. Model ZM has a zoom lens; Model DS has a fixed lens. Franklin uses an activity$-$based costing system. The following are the relevant cost data for the previous month:

Direct Cost per Unit Model ZM Model DS

Direct materials $ $20\mathrm{.}50$ $ $7\mathrm{.}00$

Direct labor $29\mathrm{.}009\mathrm{.}00$

Category Estimated Cost Cost Driver Amount of Cost Driver

Unit level $ $25,960$ Number of units ZM: $2,450$ units; DS: $9,350$ units

Batch level $48,880$ Number of setups ZM: $26$ setups; DS: $26$ setups

Product level $90,000$ Number of TV commercials ZM: $14$; DS: $11$

Facility level $180,000$ Number of machine hours ZM: $300$ hours; DS: $600$ hours

Total $ $344,840$

Franklin$$s facility has the capacity to operate $2,700$ machine hours per month.

Required

Compute the cost per unit for each product.

The current market price for products comparable to Model ZM is $$117$ and for DS is $$70.$ If Franklin sold all of its products at the market prices, what was its profit or loss for the previous month?

A market expert believes that Franklin can sell as many cameras as it can produce by pricing Model ZM at $$112$ and Model DS at $$34.$ Franklin 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? Adams Chairs, Incorporated makes two types of chairs. Model Diamond is a high$-$end product designed for professional offices. Model Gold is an economical product designed for family use. Jane Silva, the president, is worried about cut$-$throat price competition in the chairs market. Her company suffered a loss last quarter, an unprecedented event in its history. The company$$s accountant prepared the following cost data for Ms$.$ Silva:

Direct Cost per Unit Model Diamond $($D$)$ Model Gold $($G$)$

Direct materials $ $19\mathrm{.}60$ per unit $$10\mathrm{.}40$ per unit

Direct labor $ $17\mathrm{.}60/$hour $\backslash$times $2\mathrm{.}00$ hours production time $ $17\mathrm{.}60/$hour $\backslash$times $1\mathrm{.}00$ hour production time

Category Estimated Cost Cost Driver Use of Cost Driver

Unit level $ $326,400$ Number of units D: $18,000$ units; G: $33,000$ units

Batch level $812,000$ Number of setups D: $104$ setups; G: $186$ setups

Product level $640,000$ Number of TV commercials D: $5$; G: $15$

Facility level $611,000$ Number of machine hours D: $1,900$ hours; G: $2,800$ hours

Total $ $2,389,400$

The market price for office chairs comparable to Model Diamond is $$117$ and to Model Gold is $$76.$

Required

Compute the cost per unit for both products.

Dan Barker, the chief engineer, told Ms$.$ Silva that the company is currently making $173$ units of Model Diamond per batch and $177$ units of Model Gold per batch. He suggests doubling the batch sizes to cut the number of setups in half, thereby reducing the setup cost by $50$ percent. Compute the cost per unit for each product if Ms$.$ Silva adopts his suggestion.

$($For all requirements, round intermediate calculations and final answers to $2$ decimal places.$)$