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Target Casting Laser Impressions Inc. manufactures color laser printers. Model 120 presently for $250 and has a product of $200,fotos Direct materials 5140 Direct labor
Target Casting Laser Impressions Inc. manufactures color laser printers. Model 120 presently for $250 and has a product of $200,fotos Direct materials 5140 Direct labor 40 Factory overhead 20 Total 5200 It is estimated that the competitive selling price for color laser printers of this type will drop to 5340 next year Laser Impressoras extitished a twent to mastercentage in Engineers have provided the following cost-reduction Ideas 1. Purchase a plastic printer cover with snap on assembly, rather than with screws. This will reduce the amount of direct war by minutes per un 2. Add an inspection step that will add x minutes per unit of direct labor but reduce the materials tot by 15 per unit Decrease the eyde time of the injection molding machine from four minutes to three minutes per port. Thty percent of the director and 42 of the factory ovat are related meling The direct labor rate is $17 per hour. a. Determine the target cost for Model 120, assuming that the historical martup en product cost and selling price are maintained and your firat answer to twee per unit b. Ostermine the required cost reduction. Inte spostive number. Mound your final wower to two decimal proces per unit cate the three engineerry morovements together to determine regved cost reduction des can be achieved broer el amounts personer term but round out to two decimal places 1. Direct labor reduction per un 2. Additional inspection per unit 3. Injection molding productivity improvement Total savings per un
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