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 $120 each. For the foreseeable future, sales volume should equal normal capacity of production

Direct material	$1,280,000
Direct labor	800,000
Variable overhead	400,000
Fixed overhead (Note 1	432,000
Selling expense (Note 2	560,000
Administrative expense (fixed)	176,000
	$3,648,000

Notes: 1. Beyond normal capacity, fixed overhead cost increases $12,480 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 $2 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	=	Fixed cost	+	Variable cost
	Answer	=	Answer	+	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 $16 per unit on the new sale? Required selling price$ Answer per unit