Cost Formula The following total cost data are for Phoenix Manufacturing Company, which has a normal capacity per period of 40,000 units of product that sell for $90 each. For the foreseeable future, sales volume should equal normal capacity of production

Direct material $960,000

Direct labor 600,000

Variable overhead 300,000

Fixed overhead (Note 1 324,000

Selling expense (Note 2 420,000

Administrative expense (fixed) 132,000

Total $2,736,000

Notes: 1.Beyond normal capacity, fixed overhead cost increases $9,360 for each 2,000 units or fraction thereof until a maximum capacity of 50,000 units is reached. 2. Selling expenses are a 10% sales commission plus shipping costs of $1.50 per unit.

a. Using the information available, prepare a formula to estimate Phoenix's total cost at various production volumes up to normal capacity. Total cost = $Answer + $Answer + X # of units.

b. Prove your answer in requirement (a) relative to the total cost figure for 40,000 units. Total cost $Answer = Fixed cost $Answer + Variable cost $Answer

c. Calculate the planned total cost at 30,000 units. $Answer

d. If Phoenix were operating at normal capacity and accepted an order for 600 more units, what would it have to charge for the order to earn a net income before income tax of $12 per unit on the new sale? Required selling price $Answer per unit