Problem 5-20A (Algo) Cost management with an ABC system LO 5.3 Zachary Chairs, Incorporated makes two types of chairs. Model Diamond is a high-end product designed for professional offices. Model Gold is an economical product designed for family use. Jane Silva, the president, is worried about cut-throat price competition in the chairs market. Her company suffered a loss last quarter, an unprecedented event in its history. The company's accountant prepared the following cost data for Ms, Silva: The market price for office chairs comparable to Model Diamond is $117 and to Model Gold is $74 Required - Compute the cost per unit for both products. b. Dan Barkec the chief engineet, told Ms. Siva that the company is currently making 132 units of Model Diamond per batch and 250 units of Model Gold per batch. He supoests doublang the batch sues to cut the number of setups in halt, thereby reducing the setup cost by 50 percent. Compute the cost per unit for each product ir Ms. Siva adopts his suggestion (For all requirements, round intermediate calculations ond final onswers to 2 decimal places.)