Beths Supplies manufactures building tiles in one plant, which has a practical capacity of 33,000 tiles. The variable cost of the tile is $6 per unit, and the fixed costs of the plant are $264,000 annually. Current annual demand is 22,000 tiles. Beth bought the current plant because she expected that demand for the tiles would grow once her reputation was established.

Required: (a) What cost per tile should the cost system report?

(b) What is the cost of excess capacity? (

c) How would your answers to requirements (a) and (b) change if the smallest tile manufacturing plant that one could build (owing to technology) was able to produce 33,000 tiles?