Andretti Company has a single product called a Dak. The company normally produces and sells 82,000 Daks each year at a selling price of $60 per unit. The company's unit costs at this level of activity are given below:

Direct materials $ 9.50

Direct labor 11.00

Variable manufacturing overhead 2.50

Fixed manufacturing overhead 9.00 ($738,000 total)

Variable selling expenses 3.70

Fixed selling expenses 3.00 ($246,000 total)

Total cost per unit $ 38.70

A number of questions relating to the production and sale of Daks follow. Each question is independent: