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Need help on this question 5 part c of my managerial acct homework. 5 Fanning Cameras, Inc. manufactures two models of cameras. Model ZM has
Need help on this question 5 part c of my managerial acct homework.
5 Fanning Cameras, Inc. manufactures two models of cameras. Model ZM has a zoom lens; Model DS has a fixed lens. Fanning uses an activity-based costing system. The following are the relevant cost data for the previous month: 10 points Direct cost per unit Model ZM Direct materials Direct labor $20.4 28.8 Model DS $10.4 12.B Category Unit level Batch level Product level Facility level Estimated Cost Cost Driver Use of Cost Driver s 24,000 46,500 87,500 270,000 $428,000 Number of unita Number of setups Number of TV commercials Number of machine hours 2M 2,450 units; DS: 9,550 units 2M: 25 setups DS: 25 setups M: 15 DS: 10 ZM: 500 hours DS: 1,000 hours Book Print Total ReferencesFanning'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 $92. If Fanning 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 Fanning can sell as many cameras as it can produce by pricing Model ZM at $125 and Model DS at $45. Fanning 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? Complete this question by entering your answers in the tabs below Required A Required B Required C A market expert believes that Fanning can sell as many cameras as it can produce by pricing Model ZM at $125 and Model DS at $45. Fanning 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? (Round your answers to 2 decimal places.) Model ZM Model DS
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