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Bowman Specialists Inc. {BSI} manufactures specialized equipment for polishing optical lenses. There are two modelsone [A25} principally used for ne eyewear and the other [A1Dl for lenses used in binoculars, cameras. and similar equipment The following table shows the manufacturing cost of each unit is calculated, using activity-based costing. for these manufacturing cost pools. Cost: Pools allocation Base Costing Rate Materials handling Number of parts $ 3.00 per part Manufacturing supervision Hours of machine time $22.30 per hour Assembly Number of parts $ 4.95 per part Machine setup Each setup $46.60 per setup Inspection and testing Logged hours $35.00 per hour Packaging Logged hours $25.00 per hour BSI currently sells the A1D model for $5.850 and the A25 model for $1,975. Manufacturing costs and activity usage for the two products follow: 310 1-25 Direct materials $143.?6 $59.44 Number of parts 123 94 Machine-hours E . 60 4 . 40 Inspection time 1 . 20 I] . 3'0 Packing time 0.30 0.44 Setups 42 2]. ' Required: 1. Calculate the product cost and product margin for each product. 2. A new competitor has entered the market for lens-polishing equipment with a superior product at signicantly lower prices, $2,375 for the A1O model and $1,850 for the A25 model. To try to compete, BSI has made some radical improvements in the design and manufacturing of its two products. The materials costs and activity usage rates have been decreased significantly, as follows: 1-10 325 Direct materials $82.65 $44.45 Number of parts 1 14 35 Machine-hours 6 . 0 2 . 4 Inspection time 1 . 2 I] . 60 Packing time D . 3'6 0 .24 Setups 2]. 21 2-a. Calculate the total product costs with the new activity usage data. 2-b. Can BSI make a positive gross margin with the new costs, assuming that it must meet the price set by the new competitor? 4. What cost management method might be useful to BSI at this time? Complete thlo question by entering your answers In the tabs below. Req 2A Reg 23 Reg 4 Calculate the product oust and product margin for each product (Round your answers to 2 decimal places.) Product margin