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I please need assistance with the following question of this question partially answered: Question : Digital Solutions, Inc., manufactures two component parts for the

I please need assistance with the following question " of this question partially answered:

Question: Digital Solutions, Inc., manufactures two component parts for the television industry: Voltag...

What price should Digital Solutions charge for the New Voltage Regulator, and what next steps should Digital Solutions take regarding the New Voltage Regulator? (10 marks)

7) Provide a recommendation given the case facts and your analysis. (10 marks)

8) Pay attention to detail within your answers in terms of spelling, grammar, and formatting.

see the partially answered question already completed for :

Digital Solutions, Inc., manufactures two component parts for the television industry:

Voltage Regulator: Annual production and sales of 50,000 units at a selling price of $48.72 per unit.

Mother Board: Annual production and sales of 25,000 units at a selling price of $72 per unit.

Digital Solutions includes all R&D and design costs in engineering costs. Assume that Digital Solutions has no marketing, distribution, or customer-service costs.

The direct and overhead costs incurred by Digital Solutions on the Voltage Regulator and Mother Board are described as follows: Voltage Regulator

Mother Board

Total

Direct materials costs (variable)

$1,020,000

$720,000

$1,740,000

Direct manufacturing labor costs (variable)

360,000

240,000

600,000

Direct machining costs (fixed)

180,000

120,000

300,000

Manufacturing overhead costs:

Machining setup costs

112,500

Testing costs

600,000

Engineering costs

480,000

Manufacturing overhead costs

$1,192,500

Total costs

$3,832,500

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