A company expects to produce and sell 7,400 units of a single product. The following additional company information is available:

Variable costs (per unit)
Production costs	$19
Nonproduction costs	$4
Fixed costs (in total)
Overhead	$215,000
Nonproduction	$14,400

Compute this company's total cost per unit.

	$48.05
	$23.00
	$54.00
	$5.95
	$31.00

Parker Plumbing has received a special one-time order for 1,550 faucets (units) at $4 per unit. Parker currently produces and sells 5,700 units at $5.0 each. This level represents 75% of its capacity. Production costs for these units are $3.5 per unit, which includes $2 variable cost and $1.5 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of $1,500 with a zero salvage value. Management expects no other changes in costs as a result of the additional production.

If Parker wishes to earn $1,200 on the special order, the size of the order would need to be:

	1,350 units.
	2,700 units.
	600 units.
	3,100 units.
	388 units.

Marsden manufactures a cat food product called Special Export. Marsden currently has 7,000 bags of Special Export on hand. The variable production costs per bag are $1.8 and total fixed costs are $7,000. The cat food can be sold as it is for $9.0 per bag or be processed further into Prime Cat Food and Feline Surprise at an additional $2,300 cost. The additional processing will yield 7,000 bags of Prime Cat Food and 3,450 bags of Feline Surprise, which can be sold for $8.0 and $6.0 per bag, respectively.

The net advantage (incremental income) of processing Special Export further into Prime and Feline Surprise would be:

	$11,400
	$74,400
	$13,700
	$2,300
	$76,700