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 $30 each. For the foreseeable future, sales volumne should equal normal capacity of production Direct material $320,000 Direct labor 200,000 Variable overhead 100,000 Fixed overhead (Note 1 108,000 Selling expense (Note 2 140,000 Administrative expense (fixed) 44,000 $912,000 Notes: 1. Beyond normal capacity, fixed overhead cost increases $3,120 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 $0.50 per unit. a. Using the information available, prepare formula to estimate Phoenix's total cost at various production volumes up to normal capacity. Total cost = $o + $0 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 0 = $ 0 + 5 S 0 C. Calculate the planned total cost at 30,000 units. $ 0 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 $4 per unit on the new sale? Required selling price $ 0 per unit