Perez Sporting Goods Corporation makes two types of racquets, tennis and badminton. The company uses the same facility to make both products even though the processes are quite different. The company has recently converted its cost accounting system to activity-based costing. The following are the cost data that Jane Price, the cost accountant, prepared for the third quarter of the year (during which Perez made 68,000 tennis racquets and 30,200 badminton racquets). Direct Cost Direct materials Direct labor Badminton Racquet (BR) Tennis Racquet (TR) $ 15.60 per unit 31.00 per unit $ 14.10 per unit 23.10 per unit Category Unit level Batch level Product level Facility level Total Estimated Cost $ 930,000 246,000 142,500 748,000 $ 2,066,500 Cost Driver Number of inspection hours Number of setups Number of TV commercials Number of machine hours Amount of Cost Driver TR: 15,000 hours; BR: 15,000 hours TR: 83 setups; BR: 40 setups TR: 4; BR: 1 TR: 30,200 hours; BR: 37,800 hours Inspectors are paid according to the number of actual hours worked, which is determined by the number of racquets inspected. Engineers who set up equipment for both products are paid monthly salaries. TV commercial fees are paid at the beginning of the quarter. Facility-level cost includes depreciation of all production equipment. Required a. Compute the cost per unit for each product. b. If management wants to price badminton racquets 30 percent above cost, what price should the company set? Inspectors are paid according to the number of actual hours worked, which is determined by the number of racquets inspected. Engineers who set up equipment for both products are paid monthly salaries. TV commercial fees are paid at the beginning of the quarter. Facility-level cost includes depreciation of all production equipment. Required a. Compute the cost per unit for each product. b. If management wants to price badminton racquets 30 percent above cost, what price should the company set? Complete this question by entering your answers in the tabs below. Required A Required B Compute the cost per unit for each product. (Round intermediate calculations and final answers to 2 decimal places.) Type of Product Tennis racquet Badminton racquet Cost per Unit $ 60.70 < Required A Required B > Required A Required B If management wants to price badminton racquets 30 percent above cost, what price should the company set? (Round intermediate calculations and final answer to 2 decimal places.) Price of badminton racquets < Required A Required B >