Accessibility Mode Download Digital Solutions, Inc., manufactures two component parts for the television industry: Voltage Regulator: Annual production and sales of 50,000 units at a selling price of $52.50 per unit. Mother Board: Annual production and sales of 25,000 units at a selling price of $72 per unit. Digital Solutions includes all R&D and design costs in engineering costs. Assume that Digital Solutions has no marketing, distribution, or customer-service costs. The direct and overhead costs incurred by Digital Solutions on the Voltage Regulator and Mother Board are described as follows: Voltage Mother Total Regulator Board Direct materials costs (variable) $1,020,000 $720,000 $1,740,000 Direct manufacturing labor costs (variable) 360,000 240,000 600,000 Direct machining costs (fixed) 180,000 120,000 300,000 Manufacturing overhead costs: Machining setup costs Testing costs Engineering costs 112,500 600,000 480.000