Laser Impressions Inc. manufactures color laser printers. Model J$20$ presently sells for $$525$ and has a product cost of $$420,$ as follows:

Direct materials $$300$

Direct labor $80$

Factory overhead $40$

Total $$420$

It is estimated that the competitive selling price for color laser printers of this type will drop to $$500$ next year. Laser Impressions has established a target cost to maintain its historical markup percentage on product cost. Engineers have provided the following cost$-$reduction ideas:

Purchase a plastic printer cover with snap$-$on assembly, rather than with screws. This will reduce the amount of direct labor by $9$ minutes per unit.

Add an inspection step that will add six minutes per unit of direct labor but reduce the materials cost by $$11$ per unit.

Decrease the cycle time of the injection molding machine from four minutes to three minutes per part. Thirty percent of the direct labor and $42\%$ of the factory overhead are related to running injection molding machines.

The direct labor rate is $$34$ per hour.