Target Costing Laser Impressions, Inc, manufactures color laser Direct materials Direct labor printers. Model 120 presently sells for $300 and has a total product cost of $240, as follows $170 20 $240 competitive selling price for color laser printers of this type will drop to $290 next year. Laser Impressions has established a target cost to maintain its a plastic printer cover with snap-on assembly, rather than with screws. This will reduce the amount of direct labor by 9 minutes per unit. the cycle time of the injection molding machine from historical markup percentage on product cost. Engineers have provided the following cost-reduction ideas 1. Purchase 2. Add an inspection step that will add six minutes per unit of direct labor but reduce the matenials cost by $6 per unit. four minutes to three minutes per part. Thirty percent of the direct labor and 42% of the factory overhead are related to running injection molding machines The direct labor rate is $21 per hour