Quality Chairs Incorporated $($QC$)$ manufactures chairs for industrial use. Laura Winters, the Vice President for Marketing at QC$,$ concluded from market analysis that sales were dwinding for QCis standard three$-$foot chair due to aggressive pricing by competitors. QC$\text{'}$s chairs sold for $$605$ whereas the competition's comparable chair was selling for $$550.$ Winters determined that a price drop to $$550$ would be necessary to regain market share and reach a targeted annual sales level of $10,000$ chairs.

Cost data based on sales of $10,000$ chairs:

$\backslash$table$[[,$Budgeted,,$],[,$Quantity,Actual Quantity,Actual Cost$],[$Direct materials $($board feet$),91,900,82,900,$$$1,305,000$