Walton Chairs, Inc. makes two types of chairs. Model Diamond is a high-end product designed for professional ofces. Model Gold is an economical product designed for family use. Jane Silva, the president, is worried about cutthroat price competition in the chairs market. Her company suffered a loss last quarter, an unprecedented event in its history. The company's accountant prepared the following cost data for Ms. Silva: Direct Cost per Unit Model Diamond (D) Model Gold (G) Direct materials $20.30 per unit $9.60 per unit Direct labor $17.80/hour x 2.00 hours production time $17.80/hour X1.00 hour production time [ Category Estimated Cost Cost Driver Use of Cost Driver Unit level $ 239,700 Number of units D: 16,000 units; G: 31,000 units Batch level 728,000 Number of setups D: 116 setups; G: 164 setups Product level 888,000 Number of TV commercials D: 8; G: 16 Facility level 516,000 Number of machine hours D: 2,000 hours; G: 2,300 hours Total $2,371,700 The market price for office chairs comparable to Model Diamond is $120 and to Model Gold is $77. Required a. Compute the cost per unit for both products. b. Dan Barker, the chief engineer, told Ms. Silva that the company is currently making 138 units of Model Diamond per batch and 189 units of Model Gold per batch. He suggests doubling the batch sizes to cut the number of setups in half, thereby reducing the setup cost by 50 percent. Compute the cost per unit for each product if Ms. Silva adopts his suggestion. (For all requirements, round intermediate calculations and final answers to 2 decimal places.) a. Model Diamond Model Gold b. Model Diamond Model Gold