Fact Pattern: Rosecrans Manufacturing produces kerosene lanterns. The company can sell all of its output. Each unit sells for $120, and direct materials costing $48 per unit are added at the start of the first operation. Other variable costs are immaterial. Production data for one of its products is presented below: Operation 1 Operation 2 Operation 3 Total capacity per year 200,000 units 150,000 units 180,000 units Total output per year50,000 units 150,000 units 150,000 units Fixed cost of operations $1,200,000 $1,800,000 $2,250,000 Operation 1 produces 500 unsalable units and Operation 2 also produces 500 unsalable units. The relevant cost of the unsalable units to Rosecrans is A. $24.000 B. $60,000 C. $84.000