Assume that the batch sizes are the same for the New Voltage Regulator as for the Voltage Regulator. If Digital Solutions requires additional resources to implement the new design, it can acquire these additional resources in the quantities needed. Further assume the costs per unit of cost driver for the New Voltage Regulator are the same as those described for Voltage Regulator.

Required

$1)$ Develop full product costs per unit for the Voltage Regulator and Mother Board, using an activity$-$based product costing approach. $(25$ marks$)$

$2)$ What is the markup on the full product cost per unit for the Voltage Regulator? $(8$ marks$)$

$3)$ What is Digital Solution$$s target cost per unit for the New Voltage Regulator if it is to maintain the same markup percentage on the full product cost per unit as it had for the Voltage Regulator? $(10$ marks$)$

$4)$ Will the New Voltage Regulator design achieve the cost reduction targets that Digital Solutions has set? $(21$ marks$)$

$5)$ What price would Digital Solutions charge for the New Voltage Regulator if it used the same markup percentage on the full product cost per unit for the New Voltage Regulator as it did for the Voltage Regulator? $(6$ marks$)$

$6)$ What price should Digital Solutions charge for the New Voltage Regulator, and what next steps should Digital Solutions take regarding the New Voltage Regulator? $(10$ marks$)$

$7)$ Provide a recommendation given the case facts and your analysis. $(10$ marks$)$

$8)$ Pay attention to detail within your answers in terms of spelling, grammar, and formatting. $(10$ marks$)$