Hello, this is a qusetion for managerial accounting.

JayCo Ltd. manufactures tennis racquets as part of their sporting good products. Management is concerned about cost control in the tennis racquet division. Beginning in 2017, JayCo Ltd. implements a continuous improvement (Kaizen) goal of 3 percent each year. Below are the costs for 2016 and 2017.

REQUIRED:

JayCo Ltd. Plans to manufacture 10,500 racquets in 2018 and 10,750 racquets in 2019. With 2017 as a base year, prepare a budget for the tennis racquet division for the next two years.

Costs (per racquet)- Tennis Racquet Division 2016 2017 Direct materials: Nylon string blend Racquet frame blend Rubber $4.50 $ 25.00 $ 2.00 $ 30.00 (1.5 hours) 28.00 (1.5 hours) $4.20 $22.50 $ 2.25 Direct labor ($20/hr) Indirect manufacturing cost:s Variable $6.40 $ 2.50 (10,000 unit $6.50 Fixed 2.40 (10,250 unit base base