Gavin's Glassworks makes glass flanges for scientific use. Materials cost $3 per flange, and the glass blowers are paid a wage rate of $24 per hour. A glass blower blows 10 flanges per hour. Fixed manufacturing costs for flanges are $22,000 per period. Period (nonmanufacturing) costs of flanges are $19,000 per period, and are fixed.

Requirements

1.	Graph the fixed, variable, and total manufacturing cost for flanges, using units (number of flanges) on the x-axis (the horizontal axis).
2.	Assume Gavin's Glassworks manufactures and sells 8,000 flanges this period. Its competitor, Flora's Flasks, sells flanges for $9.75 each. Can Gavin sell below Flora's price and still make a profit on the flanges?
3.	How would your answer to requirement 2 differently if Gavin's Glassworks made and sold 11,000 flanges this period? Why? What does this indicate about the use of unit cost in decision making?