1. Zippy company manufactured 10,000 units in December with a total product cost of $27780 They had zero finished goods inventory at the start of December.

In December Zippy sold 7857 units at a unit price of $6.91.

Period expenses were $3348.

What is the amount of Zippy's gross profit (otherwise know as gross margin).?

2. Andee Company spends $3.38 in variable costs for each product produced. Fixed manufacturing overhead costs are $114006 a year. This year, they produced 10,000 units. What is the average TOTAL cost per unit produced? Your answer should be input to two decimal places, without using a dollar sign or commas. (HINT: TOTAL cost is made up of fixed costs and variable costs)