Paternal, Inc., owns a manufacturing plant that processes textiles. The variable costs including direct material and direct labor amount to $4 per yard. Fixed costs of operating the present facilities whose normal capacity is 30,000 yards amount to $120,000. Management is considering renting an additional building for $5,000 per period; it could process 2,500 yards per period. Other fixed costs associated with the rented building total $1,750.

Required:

Determine unit variable costs, unit fixed costs, average unit cost, total differential cost, and unit differential cost at these three capacity levels: 25,000 yards, 30,000 yards, and 32,500 yards. (Compare with preceding lower volume.)