Tool Industries manufactures large workbenches for industrial use. Sam Hartnet, the Vice President for marketing at Tool Industries, concluded from market analysis that sales were dwindling for Tool's workbenches due to aggressive pricing by competitors. Tool's workbench sells for $ whereas the competition's comparable workbench sells for $ Sam determined that a price drop to $ would be necessary to protect its market share and maintain an annual sales level of workbenches.
Cost data based on sales of workbenches:
Budgeted Quantity Actual Quantity Actual Cost
Direct materials pounds $
Direct labor hours
Machine setups number of setups
Mechanical assembly machine hours
The current cost per unit is rounded to the nearest whole dollar:
