Exercise 4.30 Novak Systems produces and sells speakers and CD players. The following information has been collected about the costs related to the systems: Selling price per unit Production costs per unit Direct materials Direct labour Variable overhead Total fixed overhead $69 $19 19 2 $363,780 Novak normally produces 25,800 of these systems per year. The managers have recently received an offer from a Mexican company to produce these systems for $48 each. The managers estimate that $252,840 of Novak's fixed costs could be eliminated if they accept the offer.