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Required information Exercise 16-15 (Algo) Target costing LO 16-2, 16-3 [The following information applies to the questions displayed below] EagleEye Limited, a manufacturer of digital

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Required information Exercise 16-15 (Algo) Target costing LO 16-2, 16-3 [The following information applies to the questions displayed below] EagleEye Limited, a manufacturer of digital cameras, is considering entry into the digital binocular market. EagleEye currently does not produce binoculars of any style, so this venture would require a careful analysis of relevant manufacturing costs to correctly assess its ability to compete. The market price for this binocular style is well established at $134 per unit. EagleEye has enough square footage in its plant to accommodate the new production line, although several pieces of new equipment would be required; their estimated cost is $4,950,000. EagleEye requires a minimum ROI of 11% on any product line investment and estimates that if it enters this market with its digital binocular product at the prevaling market price, it is confident of its ability to sell 28,000 units each yeat. Exercise 16-15 (Algo) Part a Required: a. Identify the costs that EagleEye Limited, would consider for decision of entering the digital binocular market. Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect. Raw materials and direct labor. Branch manager's salary. Design and engineering cotts. Varlable overhesd and new foed overhead costs. Required information Exercise 16-15 (Algo) Target costing LO 16-2, 16-3 [The following information applies to the questions displayed bolow] EagleEye Limited, a manufacturer of digital cameras, is considering entry into the digital binocular market. EagleEye currently does not produce binoculars of any style, so this venture would require a careful analysis of relevant manufacturing costs to correctly assess its ability to compete. The market price for this binocular style is well established ot $134 per unit. Eaglefye has enough square footage in its plant to accommodate the new production line, although several pieces of new equipment would be required; their estimated cost is $4,950,000. Eagle Eye requires a minimum ROI of 11% on any product line investment and estimates that if it enters this market with its digital binocular product at the prevailing market price, it is confident of its abality to sell 28,000 units each year. Exercise 16-15 (Algo) Part b b. Calculate the target cost per unit for entry into the digital binocular market. Note: Round your answer to 2 decimal places

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