Please give an accurate and complete answer, if correct, I will give a favorable comment.
Bowman Specialists Inc. (BS) manufactures specialized equipment for polishing optical lenses. There are two models-one (A-25) principally used for fine eyewear and the other (A10) for lenses used in binoculars, cameras and similar equipment The following table shows the manufacturing cost of each unit is calculated, using activity-based costing, for these manufacturing cost pools. Cost Pool Materials handling Manufacturing Rupervision Assembly Machine setup Inspection and testing Packaging Allocation Base Number of parts Hours of machine time Number of parts tayh setup toeged hours Logged hours conting site $ 3.60 per part $24.00 per hour $ 5.85 per part 547.80 per setup 553.00 per hour $23.00 per hour BSI currently sells the A-10 model for $4,290 and the A-25 model for $2,005. Manufacturing costs and activity usage for the two products follow A-10 $145.76 129 Direct materials Number of parta Machine-hours Inspection time Packing time Setup 3.40 1.80 1.10 30 1-25 571.44 100 5.60 1.00 0.56 15 Required: 1. Calculate the product cost and product margin for each product. 2. A new competitor has entered the market for lens-polishing equipment with a superior product at significantly lower prices. $2,405 for the A-10 model and $1,880 for the A-25 model. To try to compete, BSi has made some radical improvements in the design and manufacturing of its two products. The materials costs and activity usage rates have been decreased significantly, as follows: A-10 2-25 Direct materials 596.65 550.45 Number of parts 126 97 Machine-hours 3.6 Inspection time 1.a 0.90 Packing time 0.36 Setupe 15 9.0 0.94 2-a. Calculate the total product costs with the new activity usage data. 2-5. Can BSI make a positive gross margin with the new costs, assuming that it must meet the price set by the new competitor? 4. What cost management method might be useful to BSI at this time? Complete this question by entering your answers in the tabs below. Reg1 ReQ 2A Reg 28 Req4 Calculate the product cost and product margin for each product. (Round your answers to 2 decimal places) A-10 A-25 Productos Product margin Req2A > Required: 1. Calculate the product cost and product margin for each product 2. A new competitor has entered the market for lens-polishing equipment with a superior product at significantly lower prices $2,405 for the A-10 model and $1,880 for the A-25 model. To try to compete, BSI has made some radical improvements in the design and manufacturing of its two products. The materials costs and activity usage rates have been decreased significantly, as follows: Direct materials Number of parts Machine-hours Inspection time Packing time Setups A-10 $94.65 126 9.0 1.8 0.94 15 A-25 $50.45 97 3.6 0.90 0.36 15 2-a. Calculate the total product costs with the new activity usage data. 2-b. Can BSI make a positive gross margin with the new costs, assuming that it must meet the price set by the new competitor 4. What cost management method might be useful to BSI at this time? Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Reg 28 Reg 4 Calculate the total product costs with the new activity usage data. (Round your answers to 2 decimal places) A-10 A-25 Product cost Req 28 > Complete this question by entering your answers in the tabs below. Reg1 Reg 2A Reg 28 Read Reg4 What cost management method might be useful to est at this time? 21 Target conting O Activity-based costing Life-cycle costing Kaizen costing
