Need help on this problem please.

Requirements:

Based on the projections in Exhibits 1 4 for the total resource utilization of the WLRM and the BB products on their pre-existing equipment, TRIM Inc. management is still trying to determine if the new exercise equipment should be produced.

a) Determine the Target Cost for the Waist Line Reduction Machine.

Exhibit 1 Existing Cost Structure and Capacity Provided and Used and the Needs of the New Product, the WLRM Current cost, cost drivers and utilization of resources by Taylor's Reduction Improvement Machines Inc. for production of the current product lines, (without the WLRM) are as follows: Practical Capacity Capacity Activity Cost cost Driver of Resources used 200,000 10,000 Handling Material of moves 12,500 $1,200,000 12,000 Setting up Equipment set up hours 10,000 12 Designing Processes and Products 180,000 types of products 240.000 12 Designing Packaging types of products 360,000 300.000 Machining the Product machine hours 240.000 20,000 600,000 18,500 Direct Labor direct labor hours