Case Problem Below are The Great Pen Company unit costs of manufacturing and marketing a high-style pen at an estimated out-put level of 20,000 units per month. Manufacturing costs Direct materials $1.00 Direct manufacturing labor 1.20 0.80 Variable manufacturing indirect costs Fixed manufacturing indirect costs 050 Marketing costs Variable Fixed REQUIRED $1.50 0.90 Unless stated otherwise, assume each pen sells for $6.00 each. Show all calculations. 1. A proposal was received from an outside supplier who will make and ship these high-style pens directly to The Great Pen Company's customers as sales are forwarded from company's sales staff. Fixed marketing costs will be unaffected, but the company's variable marketing costs will be slashed by 20%. The company's plant will be idle, but its manufacturing overhead will continue at 50% of present levels. What is the maximum price per unit the company would be willing to pay the outside supplier? (Hint: Calculate the unit cost saving if no longer making the part.) a. $4.75 b. $3.95 C. $2.95 d. $5.35 e. $3.55 E Focus