Graham's Glassworks makes glass flanges for scientific use. Materials cost \$2 per flange, and the glass blowers are paid a wage rate of $21 per hour A glass blower blows 10 flanges per hour. Fixed manufacturing costs for flanges are $24,000 per perlod. Period (non-manufacturing) costs associated with flanges are $14,000 per period, and are fixed. Requirements 1. Fred's Flasks, sells flanges for $875 each Can Graham sell bolow Fred's price and still make a profit on the flanges? Assume Graham produces and sells 6,000 flanges this period 2. How would your answer to requirement 1 differ if Graharn's Glassworks made and sold 9,000 flanges this perlod? Why? What does this indicate about the use of unit cost in decision making? Requirement 1. Fred's Flasks, sells flanges for $8.75 each Can Graham sell below Fre's price and still make a profit on the flanges? Assume Graham produces and sells 6,000 flanges this period Begin by determining the formula used to calculate the total cost per unit Choose the correct answer below A. (Total fixed costs + Total variable costs) + Units produced and sold = Total cost per unit B. (Materials cost per unit + Wage rate per hour) - Units produced and sold = Total cost per unit C. (Total fixed costs + Total variable costs) + Wage rato per hour = Total cost per unit D. (Total fixed costs + Total variable costs) * Materials cost per unir = Total cost per unit Complete the sentence below (Round the total cost per unit to two docimal places) The total cost per unit to manufacture 6,000 flanges is $ therefore, they make a profit when compared to Fred's Flasks selling price of $8.75 each. Requirement 2. How would your answer to requirement 1 difler if Graham's Glassworks made and sold 9,000 fanges 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 to manufacture 9,000 flanges would be $ With production and sales at this level, the company potentially make a profit if the selling price is below $8.75 each Managers must be cautious using unit costs for decision making because do not change at the unit level