Chapter 5 Homework 6 Saved Help Save & Exit Submit Check my work 5 Bismarck Cameras, Inc. manufactures two models of cameras. Model ZM has a zoom lens; Model DS has a fixed lens. Bismarck uses an activity-based costing system. The following are the relevant cost data for the previous month: 10 points Model ZM Model DS Direct Cost per Unit Direct materials $ 45 32 $ 20 15 Direct labor eBook Cost Driver Use of Cost Driver Estimated Cost 27,000 50,000 90,000 300,000 Print Unit level Batch level Product level Facility level Total Number of units Number of setups Number of TV commercials Number of machine hours ZM: 2,400 units; DS: 9,600 units M 25 setups: DS: 25 setups M: 15; DS: 10 ZM: 500 hours: DS: 1,000 hours $467,000 Bismarck's facility has the capacity to operate 4,500 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 $200 and for DS is $86. If Bismarck 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 Bismarck can sell as many cameras as it can produce by pricing Model ZM at $196 and Model DS at $84. Bismarck 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