Davis Kitchen Supply produces stoves for commercial kitchens. The costs to manufacture and market the stoves at the company's normal volume of 6,000 units per month are shown in the following table:

Unit manufacturing costs
Variable materials	$	58
Variable labor		83
Variable overhead		33
Fixed overhead		68
Total unit manufacturing costs				$	242
Unit marketing costs
Variable		33
Fixed		78
Total unit marketing costs					111
Total unit costs				$	353

Unless otherwise stated, assume that no connection exists between the situation described in each question; each is independent. Unless otherwise stated, assume a regular selling price of $386 per unit. Ignore income taxes and other costs that are not mentioned in the table or in the question itself.

c. Davis has an opportunity to enter a highly competitive foreign market. An attraction of the foreign market is that its demand is greatest when the domestic market's demand is quite low; thus, idle production facilities could be used without affecting domestic business. An order for 2,000 units is being sought at a below-normal price to enter this market. For this order, shipping costs will total $48 per unit; total (marketing) costs to obtain the contract will be $2,000. No other variable marketing costs would be required on this order, and it would not affect domestic business. What is the minimum unit price that Davis should consider for this order of 2,000 units?

d. An inventory of 460 units of an obsolete model of the stove remains in the stockroom. These must be sold through regular channels (thus incurring variable marketing costs) at reduced prices or the inventory will soon be valueless. What is the minimum acceptable selling price for these units?

e-1. A proposal is received from an outside contractor who will make and ship 2,000 stoves per month directly to Daviss customers as orders are received from Daviss sales force. Daviss fixed marketing costs would be unaffected, but its variable marketing costs would be cut by 15 percent for these 2,000 units produced by the contractor. Daviss plant would operate at two-thirds of its normal level, and total fixed manufacturing costs would be cut by 15 percent. What in-house unit cost should be used to compare with the quotation received from the supplier? Assume the payment to the outside contractor is $223. (Round your answer to 2 decimal places.)

e-2. Should the proposal be accepted for a price (that is, payment to the outside contractor) of $223 per unit?

f-1. A proposal is received from an outside contractor who will make and ship 2,000 stoves per month directly to Daviss customers as orders are received from Daviss sales force. Daviss fixed marketing costs would be unaffected, but its variable marketing costs would be cut by 15 percent for these 2,000 units produced by the contractor. The idle facilities would be used to produce 1,600 modified stoves per month for use in extreme climates. These modified stoves could be sold for $458 each, while the costs of production would be $283 per unit variable manufacturing expense. Variable marketing costs would be $58 per unit. Fixed marketing and manufacturing costs would be unchanged whether the original 6,000 regular stoves were manufactured or the mix of 4,000 regular stoves plus 1,600 modified stoves were produced. What in-house unit cost should be used to compare with the quotation received from the outside contractor? Assume the payment to the outside contractor is $223. (Round your answer to 2 decimal places.)