1. Regal Executive, Inc., produces executive motor coaches and currently manufactures the tent awnings that accompany them at these costs:

Variable costs: Direct material Direct labor Variable overhead Total variable costs Fixed costs: Depreciation of equipment Depreciation of building Supervisor salaries Total fixed costs Total cost Cost per Unit $1,250 750 500 $2,500 500 400 Sales Value at Estimated Further Sales Value Product Split-Off Point Processing Cost after Processing Preserve mix $104,500 $ 8,000 $125,000 Juice for jelly 50,500 40,000 70,000