Company ABC has the following cost and sales projected for the upcoming year:

Variable Cost Per Unit
Direct Material	$150		Fixed costs allocated to the product	$7,900,000
Direct Wages	$170		Projected production and sales	400,000 units
Overheads	$200		Maximum production	430,000 units
Total	$520		Proposed selling price	$410/unit

1. Calculate the total absorption cost per unit. Please show your calculation.

2. If Company ABC purchases this product at $370, the equipment and resources used to manufacture this product would have no use. Please determine whether the company should purchase or manufacture the product. Explain.

3. What would the profit or loss be if $400,000 more was spent on advertising, and $30 extra per unit was spent on improving the product's packaging? The company believes it could sell 220,000 units more at the at the current selling price. Show calculation.