stion $5(6\mathrm{.}5$ Points$)$:

ompany produces $10,000$ units per month from Product A$.$ The detrils of cost elements for product are as follows:

Labor: $0\mathrm{.}30$ hours are needed to produce one unit with a cost of $$30$ per labor hour.

Material: $0\mathrm{.}50kg$ is needed to produce one unit with a cost of $$2$ per $kg.$

Factory overheads: $85\%$ of the total direct cost.

Other indirect costs: $15\%$ of the total direct cost.

Packaging cost and other charges: $15\%$ of the total $cos($direct $+$ indirect$).$

a$.$ Assuming that the company desired profit is $25\%$ of the total manufacturing cost $($direct costs, indirect costs, packaging costs, and other costs$),$ use the "bottom$-$up$"$ estimating approach to estimate the total manufacturing cost per unit and the selling price per unit for Product A$.$

b$.$ The company has performed a market survey and found that the best compecitor's selling on this product and found that the material cost $$2$ per $kg)$ is exagerated and should be coulate what should the material cost per $kg$ be in order $10$ achieve the argel price of $528$ unit. $(3$ Points$)$