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Maxi Drive manufoctures a wide variety of parts for recreational bosting, including a gear and driveshof part for high-powered outboard boat engines. Original equipment manufacturors
Maxi Drive manufoctures a wide variety of parts for recreational bosting, including a gear and driveshof part for high-powered outboard boat engines. Original equipment manufacturors such as Mercury and Honda purchase the components for use in large. powerful outboards. The part selis for $610, and sales volume averages 25,000 units per year. Recently, MaxiDrive's major competitor reduced the price of its equivalent unit to $550. The market is very competitive, and MaxiDrive realizes it must meet the new price or lose significant market share Management has begun paying cioser attention to costs and has reconfirmed the current existing standard costs. The controiler then assembled the following cost and usage dato for the most recent year for MaxiOrive's production of 25.000 unlts 1. Calculate the target cost for meintaining cuifent matket share and profitability. (Do not round intermedlate calculations. Round your Required: answer to 2 decimal places.)
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