$18$

competition's comparable workbench sells for $$1,140.$ Sam determined that a price drop to $$1,140$ would be necessary to protect its market share and maintain an annual sales level of $13\mathrm{.}200$ workbenches.

Cost data based on sales of $13,200$ workbenches:

$\backslash$table$[[,$Budgeted,Actual,$],[$Direct materials $($pounds$),$Quantity,Quantity,Actual cost$],[$Direct labor $($hours$),176,000,169,000,$$$3,451,000$