Flyer Company has a new product that will begin sales during the next year. The marketing manager estimates that 17500 s could sold at 518 per unit. However, the company can only produce a madimum of 12.500 units of the new product annully due to capacity constraints. The feed costs associated with the new product are budgeted at $75,000 for the year, which includes $30,000 for depreciation on new manufacturing equipment Data associated with each unit of product are presented as follows. Flyer Company is subject to a 40% income tax e Direct material Direct labor Manufacturing overhead Total variable manufacturing cost Selling expenses Total variable cost Variable Costs $3.50 175 200 $725 0.75 $8.00 Flyer Company's management will not continue to manufacture the new product past next year if the after-tax income is less th next year. In order to achieve target net income of $37,500, the selling price per unit must be at least. Multiple Choice