Laser Impressions, Inc , manufactures color laser printers Model J20 presently sells for $500 and has a total product cost of $400, as follows Direct materials $290 Direct labor 80 Factory overhead 30 Total $400 It is estimated that the competitive selling price for color laser printers of this type will drop to $480 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 $10 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 45 of the factory overhead are related to running injection molding machines The direct labor rate is $34 per hour a Determine the target cost for Model J20 assuming that the historical markup on product cost and selling price is maintained Round your final answer to two decimal places $ b Determine the required cost reduction Enter as a positive number Round your final answer to two decimal places $ Target Costing Laser Impressions, Inc , manufactures color laser printers Model J20 presently sells for $500 and has a total product cost of $400, as follows Direct materials Direct labor Factory overhead Total $290 80 30 $400 It is estimated that the competitive selling price for color laser printers of this type will drop to $480 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 1 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 2 Add an inspection step that will add six minutes per unit of direct labor but reduce the materials cost by $10 per unit 3 Decrease the cycle time of the injection molding machine from four minutes to three minutes per part Thirty percent of the direct labor and 45 of the factory overhead are related to running injection molding machines The direct labor rate is $34 per hour a Determine the target cost for Model 20 assuming that the historical markup on product cost and selling price is maintained Round your final answer to two decimal places b Determine the required cost reduction Enter as a positive number Round your final answer to two decimal places

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Laser Impressions, Inc., manufactures color laser printers. Model J20 presently sells for $500 and has a total product cost of $400, as follows: Direct materials

Laser Impressions, Inc., manufactures color laser printers. Model J20 presently sells for $500 and has a total product cost of $400, as follows:

Direct materials	$290
Direct labor	80
Factory overhead	30
Total	$400

It is estimated that the competitive selling price for color laser printers of this type will drop to $480 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 $10 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 45% of the factory overhead are related to running injection molding machines.

The direct labor rate is $34 per hour.

a. Determine the target cost for Model J20 assuming that the historical markup on product cost and selling price is maintained. Round your final answer to two decimal places. $

b. Determine the required cost reduction. Enter as a positive number. Round your final answer to two decimal places. $

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Target Costing Laser Impressions, Inc., manufactures color laser printers. Model J20 presently sells for $500 and has a total product cost of $400, as follows: Direct materials Direct labor Factory overhead Total $290 80 30 $400 It is estimated that the competitive selling price for color laser printers of this type will drop to $480 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: 1. 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. 2. Add an inspection step that will add six minutes per unit of direct labor but reduce the materials cost by $10 per unit. 3. Decrease the cycle time of the injection molding machine from four minutes to three minutes per part. Thirty percent of the direct labor and 45% of the factory overhead are related to running injection molding machines. The direct labor rate is $34 per hour. a. Determine the target cost for Model 20 assuming that the historical markup on product cost and selling price is maintained. Round your final answer to two decimal places. b. Determine the required cost reduction. Enter as a positive number. Round your final answer to two decimal places