Mathtime Educational Products produces two electronic, handheld educational games: Fun with Fractions and Count Calculus. Data on these products follow.

Additional data from its two production departments follow.

Required
1. Using ABC, determine the cost of each product line.
2. What is the cost per unit for Fun with Fractions? What is the cost per unit of Count Calculus?
3. If Count Calculus sells for $59.95 per unit, how much profit does the company earn per unit of Count Calculus sold?
4. What is the minimum price that the company should set per unit of Fun with Fractions?Explain.

Transcribed Image Text:

Fun with Fractlons Count Calculus Production volume Components ..450,000 parts 150,000 units 10,000 units 100,000 parts 2.000 DLH 10,000 boxes abor hours 15,000 DUH Packaging materials150,000 boxes Shipping cartons100 units per carton 25 units per carton Machine setups....*" Machine hours 52 setups 5,000 MH 52 setups 2,000 MH Department Driver Cost Assembly department Component cost ....Parts Assembly labor .Direct labor hours 244,800 Maintenance-...-.Machine hours $495,000 00,800 Wrapping department Packaging materials ShippingCartons Machine setup $460,800 27.360 187.200 . Boxes Setups