Alice is about to open her own company, Rabbit Hole Inc., which will make and sell either premium tea sets or hats. She knows you studied management accounting at university and asks you to help her choose the product line for her business. Alice emphasises that he wants her firm to make and sell only one product. She presents you with the following estimates of direct and indirect costs she expects her firm to incur depending on the product it chooses: Rabbit Hole Inc. Summary of expected costs Tea set Hat Direct materials cost per unit 70 50 Direct labour cost per unit 30 40 Indirect labour costs 40,000 30,000 Rent and rates 10,000 12,500 Heating, lighting, and power 20,000 17,500 Indirect materials cost 2,000 1,000 Other indirect costs 5,000 4,000 Labour hours for normal activity 40,000 hours 25,000 hours Alice expects that each unit of her tea set will take 10 hours of labour to produce, whereas each hat will take 5 hours of labour to produce, and assumes that all indirect costs are fixed. The selling prices of the two products are calculated by adding a 20% mark-up to the total cost of each unit Required: A. Calculate the unit total cost and the unit selling price for the two products Alice is considering. Show your workings. (12 marks)