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

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Vernon Cameras, Inc. manufactures two models of cameras. Model ZM has a zoom lens; Model DS has a fixed lens. Vernon uses an activity-based costing system. The following are the relevant cost data for the previous month: Model ZM Model DS Direct Cost per Unit Direct materials Direct labor $20.6 29.2 $ 9.0 11.0 Category Unit level Batch level Product level Facility level Total Estimated Cost $ 24,990 45,600 88,750 228,000 $387,340 Cost Driver Use of Cost Driver ZM: 2,500 units; DS: 9,400 Number of units units Number of setups ZM: 24 setups; DS: 24 setups Number of TV commercials ZM: 16; DS: 9 Number of machine hours ZM: 400 hours; DS: 800 hours Vernon's facility has the capacity to operate 3,600 machine hours per month. Required a. Compute the cost per unit for each product. b. The current market price for products comparable to Model ZM IS $126 and for DS is $78. If Vernon sold all of its products at the market prices, what was its profit or loss for the previous month? c. A market expert believes that Vernon can sell as many cameras as it can produce by pricing Model ZM at $121 and Model DS at $39. Vernon 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? Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the cost per unit for each product. (Round intermediate calculations and final answers to 2 decimal places.) Direct Materials Direct Labor . Allocated Overhead = Total Type of Product Model ZM Model DS

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