In response to competitive pressures at the end of 2016, Techno Instruments used value-engineering techniques to reduce manufacturing costs. Actual information for 2016 and 2017 is as follows: 2016 2017 Setup, production-order, and materials-handling costs per batch $ 8,400 $ 7,900 st pe Total manufacturing-operations cost per machine-hour 62 $ 49 $ 13,500 $ 10,000 Cost per engineering change The management of Techno Instruments wants to evaluate whether value engineering has succeeded in reducing the target manufacturing cost per unit of one of its products, HJ6, by 20%. Actual results for 2016 and 2017 for HJ6 are: Units of HJ6 produced Direct material cost per unit of HJ6 Total number of batches required to produce HJ6. Total machine-hours required to produce HJ6 Number of engineering changes made Actual Results for 2016 Actual Results for 2017 3,000 4,000 2,400 $ 2,000 70 80 18,900 20,400 10 8