QUESTION FIVE Tech mat two Alpaca, for which the following data is va Teleos used in this casting ABC) proach Sports ar 30 per hour and quality inspections 20 per unit Engineering costs are all to pred te his of speciales Alpha 3.000 Numeris dans 660.00 Daniel Cotal) 92.000 12.000 EINO 150 Directeur de Lagergres Ced E35 21.000 Eachine mamber of 500 100 Set up time per botch 4 hours Quality inspection per unit time take) 0.25 hours 0.10 Telco Industries wishes to reduce the price of the Beast and has a set a target price of E$3.00 Pingine proposed a revival product design, Beta-Ccm, in an effort to reduce co Expected effects of the Betalium design, relative to the current et product we predicted to be as follows where we will rechtech: Directoriales are expected to deereely 300 per unit and labour costs ty 64,500 in tali Baiches and engineering costs are expected to be unchanged, but Beta-Com production will require 25% less cup time per te Quality inspection time per unit of Beta-C will increase by 10% on current levels Required: (A) Explain the rationale for targeting practices in antices. Illustrate you answer with diagrams if appropriate (15 marks) (B) Calculate the full product cost per unit and the markup percentage on the full product cost per unit of Alpha and Beta (15 marks) (C) Determine the target cost for Besa-cam if Telco Industries is to maintain the same percentagemark-up on full product cost as per le (5 marius) Advise Telco Industries on whether the proposed design changes are officient. In your answer, determine the price Telco Industries will change per unit of Beta-Gum, if it is to keep the same mark-up percentage on full product cost as it has for Bett. (15 marks) (Total: 50 marks) Page 4 of 6 QUESTION FIVE Tech mat two Alpaca, for which the following data is va Teleos used in this casting ABC) proach Sports ar 30 per hour and quality inspections 20 per unit Engineering costs are all to pred te his of speciales Alpha 3.000 Numeris dans 660.00 Daniel Cotal) 92.000 12.000 EINO 150 Directeur de Lagergres Ced E35 21.000 Eachine mamber of 500 100 Set up time per botch 4 hours Quality inspection per unit time take) 0.25 hours 0.10 Telco Industries wishes to reduce the price of the Beast and has a set a target price of E$3.00 Pingine proposed a revival product design, Beta-Ccm, in an effort to reduce co Expected effects of the Betalium design, relative to the current et product we predicted to be as follows where we will rechtech: Directoriales are expected to deereely 300 per unit and labour costs ty 64,500 in tali Baiches and engineering costs are expected to be unchanged, but Beta-Com production will require 25% less cup time per te Quality inspection time per unit of Beta-C will increase by 10% on current levels Required: (A) Explain the rationale for targeting practices in antices. Illustrate you answer with diagrams if appropriate (15 marks) (B) Calculate the full product cost per unit and the markup percentage on the full product cost per unit of Alpha and Beta (15 marks) (C) Determine the target cost for Besa-cam if Telco Industries is to maintain the same percentagemark-up on full product cost as per le (5 marius) Advise Telco Industries on whether the proposed design changes are officient. In your answer, determine the price Telco Industries will change per unit of Beta-Gum, if it is to keep the same mark-up percentage on full product cost as it has for Bett. (15 marks) (Total: 50 marks) Page 4 of 6