Complete the question $6-7-8.$ There is considerable overlap between these activity classifications$-$environmental and quality$-$and two of the top three risks

$)$ that arose from the inherent risk plot $($Requirement $2).$

$6.$ Consider the unit costs $($round all answers to two decimal places$)$:

a$.$ Determine the cost per unit for the two proposed products $($FLI $4$HY and FLI $2$LW$)$ by calculating primary activity rates and applying costs accordingly.

Activity rates:

Setting up

Blending chemicals

Producing waste

Disposing of hazardous waste

Inspecting products

$\backslash$$ per setup hr$.$

$\backslash$$ per DLH

$\backslash$$ per lb$.$ of waste

$\backslash$$ per lb$.$ of haz. waste

$\backslash$$ per insp. hr$.$

Monitoring release of air contaminants $\backslash$$ per ton

Operating pollution control equipment $\backslash$$ per MH

FLI $4$HY $\backslash$$

FLI $2$LW $\backslash$$

b$.$ Calculate the environmental cost per unit and the quality cost per unit. Round your answers to two decimal places.

FLI $4$HY FLI $2$LW

c$.$ What do these unit cost data tell you about the relative desirability of the two products?

$1.$ Product $4$ HY appears to be a better product due to low quality cost per unit. But it appears that development has been paying more attention to quality issues, especially given the fact that several batch recalls have occurred recently.

$2.$ Product $2$LW appears to be a better product due to the low quality cost per unit. But it appears that development has been paying more attention to quality issues, especially given the fact that several batch recalls have occurred recently.

$3.$ Both the products are equally good and the quality cost per unit are low.

d$.$ How do the financial insights provided by these activity$-$based costs relate to the risk insights provided by the inherent risk plot $($in Requirement $2)?$

The ABC analysis confirms Katerina's suspicions that environmental costs are : than previously realized and adds considerable value by providing a more thorough estimate of the amount by which these environmental costs expectations.

$7.$ Following Sakari's suggestion, Noela decided to use target costing to help improve new product profitability. Based on analyses by Noela and William, the target prices for $4$ HY and $2$ LW are $\backslash (\backslash$$ $500\backslash )$ per pound and $\backslash (\backslash$$ $350\backslash )$ per pound, respectively. Noela has indicated that any new product should earn a gross profit equal to $20$ percent of sales. Based on this information, answer the following items $($round all answers to two decimal places$)$:

a$1.$ What is the target cost for each product?

FLI$4$HY FLI$2$LW

a$2.$ Given this information, recommend the action that should be taken with respect to offering or not offering the two new products. Briefly explain your recommendation.

At this point, the

light could be given to the $.$

product cost fails to meet the target cost, while the product, and more development work is needed for the $.$

product cost is lower than its target cost. Thus, a green

$-$ product before it is approved for launch.

a$3.$ Also, calculate the impact of your recommendation on JAT's total profits.

$\backslash$$

b$1.$ Suppose William indicates that unit sales for each product can be increased by $50$ percent if the selling price is lowered by $10$ percent. Assuming the same target profit $($Noela wants the original target profit dollar amount per pound maintained$),$ calculate the new target cost for each product. Furthermore, assume that Katerina believes that all environmental and quality costs are non$-$value$-$added. Round your answers to two decimal places.

FLI$4$HY FLI$2$LW b$2.$ Calculate the unit cost at the $50,000-$unit level. Round your answers to two decimal places.

FLI$4$HY FLI$2$LW

b$3.$ If all non$-$value$-$added costs were eliminated, could these new target costs be met?

b$4.$ Also, calculate the effect on total profits under a scenario where all non$-$value$-$added costs are eliminated. $($Include in this analysis any possible increase in sales volume.$)$ Round your answers to two decimal places.

FLI$4$HY FLI$2$LW

Based on your scenario analysis, recommend whether JAT should or should not implement this new target cost and eliminate non$-$value$-$added costs. Briefly explain your recommendation.

If the non$-$value$-$added costs are all $,$ then only the value$-$added costs

c$1.$ After additional consultation with JAT's general counsel, Katerina now believes that the cost to monitor the release of air contaminants is a value$-$added cost because it is required by the new Pollution Prevention Act. Recalculate the effect on total profits if the cost to monitor the release of air contaminants is treated as a value$-$added cost $($i$.$e$.,$ not eliminated$).$ Round your answers to two decimal places.

FLI$4$HY FLI$2$LW

c$2.$ Briefly explain how this treatment affects your recommendation $($in Requirement $7$b$).$

The inclusion of monitoring activity costs as a value$-$added cost results in a impact on total profitability. While this impact is than when this cost was eliminated as a non$-$value$-$added cost, it is $.$ Therefore, all else equal, JAT pursue this target cost policy and elimination of non$-$value$-$added costs.

$8.$ Sakari has decided that utilizing data analytics in responding to the issues raised in the planning meeting would allow for an easier and a quicker response to