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Quality Industries manufactures large workbenches for industrial use. Yewell Hartnet, the Vice President for marketing at Quality Industries, concluded from market analysis that sales were

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Quality Industries manufactures large workbenches for industrial use. Yewell Hartnet, the Vice President for marketing at Quality Industries, concluded from market analysis that sales were dwinding for Quality's workbenches due to aggressive pricing by competitors. Ouality's workbenches for $1,500 whereas the competition's comparable workbench sells for $1420. Yewell determined that a price drop to $1420 would be necessary to protect its market share and maintain an annual sales level of 13.900 workbenches Cost data based on sales of 13,900 workbenches: Budgeted Actual Quantity Quantity Actual cost Direct materials (pounds) 179,500 172,500 $3,454,500 Direct labor (hours) 74,600 73,750 327,250 Machine setups (no. of setups) 1,350 1,060 254,500 Mechanical assembly (nachine hours) 30, 450 263,500 3,759,000 the profit per unit is maintained the target cost per unit is rounded to the nearest whole dollar 5427 $32

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