Foresight Company manufactures binoculars. The actual costs for 2016 and 2017 were as follows:
$$\begin{array} { l l l l l }
& 2016 && 2017 \
\text { Direct materials: } \
\quad\text { Plastic case } & \$ 4.00 && \$ 3.80 \
\quad\text { Lens set } & 17.00 && 17.20 \
\text { Direct labor }& 32.00\quad \text { (1.6 hours) } && 30.00 \quad\text { (1.5 hours) } \
\text { Indirect manufacturing costs: } & & & & \
\quad \text { Variable } & 8.00 && 7.10 & \
\quad \text { Fixed } & 2.00\quad ( 50,000 \text { units } ) && 1.60 \quad ( 60,000 \text { units } )
\end{array}$$ Beginning in 2017, Foresight implemented a continuous improvement program that required a first-year cost reduction target of a 5 percent reduction of the 2016 base.
-Foresight's continuous improvement target for lens sets in 2017 was:

Question

Foresight Company manufactures binoculars. The actual costs for 2016 and 2017 were as follows:
 $$\begin{array} { l l l l l } 
& 2016 &&  2017  \
\text { Direct materials: } \
\quad\text { Plastic case } & \$ 4.00 && \$ 3.80 \
\quad\text { Lens set } & 17.00 && 17.20 \
\text { Direct labor }& 32.00\quad \text { (1.6 hours) } && 30.00 \quad\text { (1.5 hours) } \
\text { Indirect manufacturing costs: } & & & & \
\quad \text { Variable } & 8.00 &&  7.10 & \
\quad \text { Fixed } & 2.00\quad  ( 50,000 \text { units } ) && 1.60 \quad ( 60,000 \text { units } )
\end{array}$$ Beginning in 2017, Foresight implemented a continuous improvement program that required a first-year cost reduction target of a 5 percent reduction of the 2016 base.
-Foresight's continuous improvement target for lens sets in 2017 was:

Quizplus · Accepted Answer

The Answer of Foresight Company manufactures binoculars. The actual costs for 2016 and 2017 were as follows:
 $$\begin{array} { l l l l l } 
& 2016 &&  2017  \
\text { Direct materials: } \
\quad\text { Plastic case } & \$ 4.00 && \$ 3.80 \
\quad\text { Lens set } & 17.00 && 17.20 \
\text { Direct labor }& 32.00\quad \text { (1.6 hours) } && 30.00 \quad\text { (1.5 hours) } \
\text { Indirect manufacturing costs: } & & & & \
\quad \text { Variable } & 8.00 &&  7.10 & \
\quad \text { Fixed } & 2.00\quad  ( 50,000 \text { units } ) && 1.60 \quad ( 60,000 \text { units } )
\end{array}$$ Beginning in 2017, Foresight implemented a continuous improvement program that required a first-year cost reduction target of a 5 percent reduction of the 2016 base.
-Foresight's continuous improvement target for lens sets in 2017 was:

Foresight Company Manufactures Binoculars Beginning in 2017, Foresight Implemented a Continuous Improvement Program That