Lens Care Incorporated (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	$ 2.50	per part
Manufacturing supervision	Hours of machine time	$ 14.81	per hour
Assembly	Number of parts	$ 3.35	per part
Machine setup	Each setup	$ 56.55	per setup
Inspection and testing	Logged hours	$ 45.55	per hour
Packaging	Logged hours	$ 19.55	per hour

LCI currently sells the B-13 model for $2,000 and the F-32 model for $1,500. Manufacturing costs and activity usage for the two products are as follows:

	B-13	F-32
Direct materials	$ 164.55	$ 75.64
Number of parts	161	121
Machine hours	7.95	4.21
Inspection time	1.80	0.90
Packaging time	0.95	0.55
Setups	4	3

The market price for B-13 and F-32 are reduced to $1,920 and $1,375 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

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• 45

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