11-43 Product mix, special order. (N. Melumad, adapted) Gormley Precision Tools makes cutting tools for metalworking operations. It makes two types of tools: A6, a regular cutting tool, and EX4, a highprecision cutting tool. A6 is manufactured on a regular machine, but EX4 must be manufactured on both the regular machine and a high-precision machine. The following information is available: A6 EX4 Selling price $ 180 $ 280 Variable manufacturing cost per unit $ 110 $ 190 Variable marketing cost per unit $ 20 $ 60 Budgeted total fixed overhead costs $700,000 $1,100,000 Hours required to produce one unit on the regular machine 1.0 0.5 Additional information includes the following: a. Gormley faces a capacity constraint on the regular machine