please solve

Xavier Xtreme Inc. (XX(1) manufactures bedroom furniture in sets (a set includes a dresser, two queen-size beds, and one bedside table) for use in motels and hotels. The ownership group had a vision to be the premier supplier of bedroom furniture to suite the business traveler. XXI has three customer groups, which it call the value, quality, and luxury groups. The "value" products are targeted to low-price motels that are looking for simple furniture, while the luxury furniture is targeted to the very best hotels. The value line is attractive to a variety of hotels and motels that appreciate the combination of quality and value. Currently there has been a small increase in the quality and value lines, and an appreciable increase in demand in the luxury line, reflecting cyclical changes in the marketplace. In 2019, Luxury hotels, was in more demand for business travel, while 5 years ago, the value segment was the most popular for business travelers. XXI wants to be able to respond to any change in demand with increased production, but worries about the increased production cost, and about price setting as its mix of customers and production change. XXI has used a volume- based overhead allocation rate based on direct labor hours for some time. Direct labor cost is $15 per hour. Due to the recent pandemic, XXI ownership group is changing its strategy to focus on being the number one supplier of bedroom furniture. They are currently are looking at securing contracts with leading distributers and have asked for your help. 12 13 Dat 14 Budgeted Cost Cost Driver 15 Materials handling $349,800 Number of Parts 16 Product Scheduling $160,000 Number of Production orders Setup Labor $216,000 Number of setups Automated Machinery $1,750,000 Machine hours 19 Finishing $819,500 Direct labor hours Pack and Ship $290,400 Number of orders shipped $3,385,500 General, Selling, and Adm Costs $5,000,000 The budgeted production data for the three product lines follows. Product Lines Value Quality Luxury Sets Produced 15,000 5,000 600 Price $850 $900 $1,200 Direct Materials cost per set $80 $50 $110 Number of Parts per set 30 50 120 Direct Labor Hours per set 4 5 7 Machine Hours per set 3 7 15 Production Orders 50 70 200 Production Setups 20 50 50 Orders Shipped 1,000 2,000 300 Number of Inspections 2 14 Required (round all driver rates and unit costs to two decimal places) 41 42 1. Determine the unit cost for each of the three products and the total production cost of each of the three product 43 2. Determine the unit production cost for each of the three products using XXI's current volume-based approach. 3. Compare the two approaches and discuss the strategic and competitive issues of using each of the two methods. 45 4. Given the change in strategy due to uncertain times with business travelers, calculate what the revised pricing