Question: i need help answering this please completed sc Problem 5-19A (Algo) Target pricing and target costing with ABC LO 5-3 Finch Cameras, Inc. manufactures two

completed sc Problem 5-19A (Algo) Target pricing and target costing with ABC LO 5-3 Finch Cameras, Inc. manufactures two models of cameras. Model ZM has a zoom lens; Model DS has a fixed lens. Finch uses an activity-based costing system. The following are the relevant cost data for the previous month: Model 2 Direct Cost per Unit Direct materials Direct labor $20.50 29.00 Model Ds $10.50 13.00 Category Unit level Batch level Product Level Facility level Total Estimated cost $ 24,000 47.000 87,500 270,000 $428,500 Cost Driver Number of units Number of setups Number of TV commercials Number of machine hours Use of Cost Driver 2M1 2,450 units: DS 9,550 units M: 25 setupa) DS: 25 setups M 141 DS: 11 ZM: 500 hours: Ds1,000 hours Finch'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 $129 and for DS is $80. If Finch 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 Finch can sell as many cameras as it can produce by pricing Model at $124 and Model DS at $45. Finch would like to use those estimates as its target prices and have a profit margin of 30 percent of target prices. What is the targe cost for each product? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required C A market expert believes that Finch can sell as many cameras as it can produce by pricing Model ZM at $124 and Model DS at $45. Finch 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? (Round your answers to 2 decimal places.) 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 $129 and for DS is $80. If Finch 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 Finch can sell as many cameras as it can produce by pricing Model ZM at $124 and Model DS at $45. Finch 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? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required C A market expert believes that Finch can sell as many cameras as it can produce by pricing Model ZM at $124 and Model DS at $45. Finch 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? (Round your answers to 2 decimal places.) Target cost / unit Model ZM $ 99.20 X Model DS 36.00
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
