Gabrielle's Glassworks makes glass flanges for scientific use. Materials cost $3 per flange, and the glass blowers are paid a wage rate of $26 per hour. A glass blower blows 10 flanges per hour. Fixed manufacturing costs for flanges are $26,000 per period. Period (nonmanufacturing) costs associated with flanges are $16,000 per period and are fixed. Read the requirements. 100,000 Variable costs Fixed costs Total costs 0- 2,04/06/03)00012/10,000 Number of flanges 100,000 Total costs Fixed costs Variable costs 0 Number of flanges 100,000 Variable costs Fixed costs 0 Total costs 2,04/06/04/010002,00,000 Number of flanges 100,000 Total costs Fixed costs Variable costs 0 Number of flanges Requirement 2. Assume Gabrielle's Glassworks manufactures and sells 5,000 flanges this period. Its competitor, Fifi's Flasks, sells flanges for $9.50 each. Can Gabrielle sell below Fifi's price and still make a profit on the flanges? (Round the total cost per unit to two decimal places.) Begin by determining the formula used to calculate the total cost per unit. Total fixed costs Total variable costs )+ Units produced and sold = Total cost per unit The total cost per unit when manufacturing 5,000 flanges is Fifi's price and still make a profit. ; therefore, they sell below Requirement 3. How would your answer to requirement 2 differ if Gabrielle's Glassworks made and sold 12,000 flanges this period? Why? What does this indicate about the use of unit cost in decision making? (Round the total cost per unit to two decimal places.) The total cost per unit when manufacturing 12,000 flanges would be With production and sales at this level, the company make a profit if the selling price is below $9.50 each. Managers must be cautious using unit costs for decision making because remain the same