Drastic Momentum Company sells one of its products for $240 each. Sales volume averages 1850 units p
Drastic Momentum Company sells one of its products for $240 each. Sales volume averages 1850 units per year. Recently, its main competitor reduced the price of its product to $225. Drastic Momentum Company expects sales to drop dramatically unless it matches the competitor's price. In addition, the current profit per unit must be maintained. Information about the product (for production of 1850) is as follows: SQ AQ Actual Cost Materials (pounds) 4,500 4,550 $104,650 Labor (hours) 1,500 1,600 $190,400 Setups (hours) 100 120 $13,560 Material handling (moves) 80 95 $42,750 Warranties (number repaired) 215 228 $34,200 The non-value-added cost per unit is A $12.98 $44.45 с $19.54 $48.92