Munoz Cameras, Inc. manufactures two models of cameras. Model ZM has a zoom lens; Model DS has a fixed lens. Munoz uses an activity-based costing system. The following are the relevant cost data for the previous month: Direct Cost per Unit Direct materials Direct labor Model ZM $20.90 29.80 Model DS $10.90 13.80 Category Unit level Batch level Product level Facility level Total Estimated Cost $ 24,000 49,000 87,500 270,000 $430,500 Cost Driver Number of units Number of setups Number of TV commercials Number of machine hours Use of Cost Driver ZM: 2, 350 units; DS: 9,650 units ZM: 25 setups; DS: 25 setups ZM: 14; DS: 11 ZM: 500 hours; DS: 1,000 hours Munoz's facility has the capacity to operate 4,500 machine hours per month. Required a. Compute the cost per unit for each product. b. The current market price for products comparable to Model ZM is $130 and for DS is $84. If Munoz sold all of its products at the market prices, what was its profit or loss for the previous month? c. A market expert believes that Munoz can sell as many cameras as it can produce by pricing Model ZM at $125 and Model DS at $47. Munoz would like to use those estimates as its target prices and have a profit margin of 30 percent of target prices. What is the target cost for each product?