Problem 5-18A Pricing decisions made with ABC system cost date LO 5-1, 5-2, 5-3 Jordan 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 2018 (during which Jordan made 71,000 tennis racquets and 30,400 badminton racquets) Direct materials Direct labor $18.68 per unit 35.e0 per unit $14.68 per unit 23.10 per unit $ 868,eee Unit level Batch level Product level Facility level Total Number of setups Number of TV commercials Number of machine hours TR: 77 setups; BR: 48 setups TR: 4; BR: 1 TR: 31,608 hours; BR: 32,400 hours 287,500 640 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 K Prey 3 of 3 Next 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 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 ARequired B Compute the cost per unit for each product. (Round intermediate calculations and final ans Type of Product Cost per Unit to 2 decimal places.) Bad Racquet Prey 3 of 3E Next 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 poduction 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 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.) of Required A Prev 3 of 3 Next