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Perez Cameras, Inc. manufactures two models of cameras. Model ZM has a zoom lens; Model DS has a fixed lens. Perez uses an activity-based costing

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Perez Cameras, Inc. manufactures two models of cameras. Model ZM has a zoom lens; Model DS has a fixed lens. Perez 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 $20.00 28.00 Model DS $ 9.00 11.08 Category Unit level Batch level Product level Facility level Total Estimated cost $ 24,990 48,000 88,750 228,888 $ 389,740 Cost Driver Number of units Number of setups Number of TV commercials Number of machine hours Use of Cost Driver ZM: 2,400 units; DS: 9,500 units ZM: 24 setups; DS: 24 setups ZM: 13; DS: 12 ZM: 4ee hours; DS: 800 hours Perez's facility has the capacity to operate 3,600 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 $121 and for DS IS $85. If Perez 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 Perez can sell as many cameras as it can produce by pricing Model ZM at $116 and Model DS at $40. Perez 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

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