Balerio Corporation's relevant range of activity is 7,000 units to 9,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 6.00 $ 4.50 $ 2.00 Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense $8.50 $ 1.25 If the number of units Balerio produces more than 9,000 (outside its relevant range) Total fixed manufacturing overhead cost is $180,000. Balerio believes that it can currently sell 11,000 units this year up from the 9,000 units it produced last year. If the per-unit selling price is $32.00.