A business makes three products, A, B and C. All three products require the use of two types of machine: cutting machines and assembling machines. Estimates for next year include the following: Product A Selling price ( per unit) 25 Sales demand (units) : 2,500 Material cost ( per unit) 12 Variable production cost ( per unit) & Time required per unit on cutting machines (hours) 1.0 Time required per unit on assembling machines (hours) .5 B C 30 18 3,400 5,100 13 10 4 3 1.0 0.5 1.0 0.5 Fixed cost for next year is expected to total 42,000. It is the business's policy for each unit of production to absorb this in proportion to its total variable cost. The business has cutting machine capacity of 5,000 hours a year and assembling machine capacity of 8,000 hours a year