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: Model ZM Model DS Direct Cost per Unit Direct materials Direct labor $20.90 29.80 $7.00 9.00 Category Unit level Batch level Product level Facility level Estimated Cost $ 25,960 50,960 90,000 180,000 $346,920 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: 9,450 units ZM: 26 setups; DS: 26 setups ZM: 14; DS: 11 ZM: 300 hours; DS: 600 hours Total Perez's facility has the capacity to operate 2,700 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 $119 and for DS is $66. 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 $114 and Model DS at $34. 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? Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the cost per unit for each product. (Round intermediate calculations and final answers to 2 decimal places.) Type of Product Direct Materials Direct Labor Allocated Overhead = Total Model ZM $ 0.00 0.00 Model DS Complete this question by entering your answers in the tabs below. Required A Required B Required C ------------ The current market price for products comparable to Model ZM is $119 and for DS is $66. If Perez sold all of its products at the market prices, what was its profit or loss for the previous month? (Round intermediate calculations to 2 decimal places. Loss amounts should be indicated by a minus sign.) Amount Model ZM Model DS Required A Required B Required C A market expert believes that Perez can sell as many cameras as it can produce by pricing Model ZM at $114 and Model DS at $34. 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? (Round your answers to 2 decimal places.) Model ZM Model DS Target cost / unit