Andretti Company produces and sells a single product called a Dak.The company normally produces and sells 60,000 Daks each year at a selling price of $32 per unit.The company's unit costs at this level of activity are given below:

Direct materials

$10.00

Direct manufacturing labor

4.50

Variable manufacturing overhead

2.30

Fixed manufacturing overhead

5.00

($300,000 total)

Variable selling expenses

1.20

Fixed selling expenses

3.50

($210,000 total)

Total cost per unit

$26.50

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