Thornton Cameras, Inc manufactures two models of cameras Model ZM has a zoom lens Model DS has a fixed lens Thornton uses an activity based costing system The following are the relevant cost data for the previous month Direct Cost per Unit Model ZM Model DS Direct materials $ 20 50 $ 9 00 Direct labor 29 00 11 00 Category Estimated Cost Cost Driver Use of Cost Driver Unit level $ 24,990 Number of units ZM 2,450 units DS 9,450 units Batch level 45,120 Number of setups ZM 24 setups DS 24 setups Product level 88,750 Number of TV commercials ZM 16 DS 9 Facility level 228,000 Number of machine hours ZM 400 hours DS 800 hours Total $ 386,860 Thorntons facility has the capacity to operate 3,600 machine hours per month Required Compute the cost per unit for each product The current market price for products comparable to Model ZM is $126 and for DS is $90 If Thornton sold all of its products at the market prices, what was its profit or loss for the previous month A market expert believes that Thornton can sell as many cameras as it can produce by pricing Model ZM at $121 and Model DS at $39 Thornton would like to use those estimates as its target prices and have a profit margin of 30 percent of target prices What is the target cost for each product

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Thornton Cameras, Inc. manufactures two models of cameras. Model ZM has a zoom lens; Model DS has a fixed lens. Thornton uses an activity-based costing

Thornton Cameras, Inc. manufactures two models of cameras. Model ZM has a zoom lens; Model DS has a fixed lens. Thornton uses an activity-based costing system. The following are the relevant cost data for the previous month:

Direct Cost per Unit	Model ZM		Model DS
Direct materials	$	20.50	$	9.00
Direct labor		29.00		11.00

Category	Estimated Cost			Cost Driver	Use of Cost Driver
Unit level		$	24,990	Number of units	ZM: 2,450 units; DS: 9,450 units
Batch level			45,120	Number of setups	ZM: 24 setups; DS: 24 setups
Product level			88,750	Number of TV commercials	ZM: 16; DS: 9
Facility level			228,000	Number of machine hours	ZM: 400 hours; DS: 800 hours
Total		$	386,860

Thorntons facility has the capacity to operate 3,600 machine hours per month.

Required

Compute the cost per unit for each product.
The current market price for products comparable to Model ZM is $126 and for DS is $90. If Thornton sold all of its products at the market prices, what was its profit or loss for the previous month?
A market expert believes that Thornton can sell as many cameras as it can produce by pricing Model ZM at $121 and Model DS at $39. Thornton would like to use those estimates as its target prices and have a profit margin of 30 percent of target prices. What is the target cost for each product?