Lens Care Inc. (LCI) manufactures specialized equipment for polishing optical lenses. There are two models - one mainly used for fine eyewear (F-32) and another for lenses used in binoculars, cameras, and similar equipment (B-13).

The manufacturing cost of each unit is calculated using activity-based costing, using the following manufacturing cost pools:

Cost Pools Allocation Base Costing Rate Materials handling Number of parts $ 2.40 per part

Manufacturing supervision Hours of machine time $ 14.80 per hour

Assembly Number of parts $ 3.30 per part

Machine setup Each setup $ 56.50 per setup

Inspection and testing Logged hours $ 45.50 per hour

Packaging Logged hours $ 19.50 per hour

LCI currently sells the B-13 model for $1,775 and the F-32 model for $1,220. Manufacturing costs and activity usage for the two products are as follows:

B-13 F-32 Direct materials $ 164.50 $ 75.60

Number of parts 160 120

Machine hours 7.90 4.20

Inspection time 1.70 0.80

Packaging time 0.90 0.50

Setups 3 2 The market price for B-13 and F-32 are reduced to $1,695 and $1,095 respectively. To achieve the target cost, Lens Care plans to reduce materials handling costs. How many parts must be removed from B-13 in order to achieve the target cost for B-13 (round up to whole units)?

Multiple Choice

a) 34

b) 15

c) 25

d) 53

e) 46