1. A digitized music tuner has been a staple in Smooth Sounds' product line for several years. Annual fixed cost of production and administration related to this product in the past have been $643,500. Variable costs of production and sales have been $17 per unit. The selling price in the past has been $28 per unit. For the year just ended, the company sold 100,000 units. In the coming year, based on the appearance of competing products on the market, the company expects a decrease of 10% in unit sales. Assuming that the company wants a profit before tax of $405,000, what is the required selling price if it expects to sell 90,000 units? a. $30.80 b. $27.95 C. $25.60 d. $28.65 2. Citrus, Inc. used the high-low method to estimate that its fixed costs are $210,000. At its low level of activity, 100,000 units, average cost was $2.60 per unit. What would Citrus predict its average cost per unit to be when product is 200,000 units? a. $1.05 b. $1.55 C. $2.60 d. $5.20