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ut. Metropolsan, Inc., sells one of its products for S40 each. Sales volume averages 2,000 units per year. Recently, as main competitor reduced the price

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ut. Metropolsan, Inc., sells one of its products for S40 each. Sales volume averages 2,000 units per year. Recently, as main competitor reduced the price of its product to $28. Metropolitan expects sales tfaon about the prod- matches the competitor's price. In addition, the to $28. Metropolitan expects sales to drop dramatically unless it current profit per unit must be maintained. Information prod- uct (for production of 2,000) is as follows Actual $20,000 10,000 6,000 2,000 10,000 SQ 4,900 1,200 Materials (pounds) Labor (hours) Setups (hours) Material handling (moves) Warranties (number repaired) AQ 5,000 1,250 200 350 250 Required: a. Calculate the target cost for maintaining current market share and profitability b. Calculate the non-value-added cost per unit. c. If non-value-added costs can be reduced to zero, can the target cost be achieved

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