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Carpets Unlimited produces and sells three lines of carpet: economy grade, standard grade, and ad the following report on the based on yards of carpet. ;ested that the company should no other lines. Assuming all fixed nat would be the reported profit arpet line was dropped? ABC Company has fixed costs of $300,000 per month. Total output per month is 150,000 units. Minimum pay for production line workers is $5.85 per hour, and total variable costs are currently $275,000 per month. If variable costs increase to $350,000 per month and production output increases to 206,250 per month, what is the marginal cost for increasing production? $1.33 per unit marginal cost. $0.75 per unit marginal cost. $1.40 per unit marginal cost. $2.60 per unit marginal cost. ($33,750) $15,169 (\$130,000) $27,000