Accounting questions. calculating costs and need help. Thanks

Case Problem: Below are The Great Pen Company unit costs of manufacturing and marketing a high-style pen at an estimated out-put level of 20,000 units per month. Manufacturing costs: Direct materials $1.00 Direct manufacturing labor 1.20 Variable manufacturing indirect costs 0.80 Fixed manufacturing indirect costs 0.50 Marketing costs: Variable $1.50 Fixed 0.90 REQUIRED: Each situation is independent from the others. Unless stated otherwise, assume each pen sells for $6.00 each. Choose the best answer to each question. Show all calculations. You must show all your work to receive credit for this assignment. Each question is worth 4 pts. 1. What is the unit cost of each pen if The Great Pen Company produces only 10,000 total pens per month? a. $3.00 b. $3.50 0. $5.00 d. $2.20 e. $5.90 2. A contract with the government for 5,000 pens calls for the reimbursement of all manufacturing costs plus a xed fee of $1,000. No variable marketing costs are incurred on the government contract. You are asked to compare the following two alternatives: Sales Each Month to Alternative A Alternative B Regular customers 15,000 pens 15,000 pens Government 0 pens 5,000 pens On a per month basis, operating income under Alternative B is greater than under Alternative A by a. $1,000 b. $2,500 c. $3,500 d. $300 e. None of these