-low analysis P6-3A. Cost Formulas Longboat Manufacturing produces a single product requiring the following direct LO2, 3,6 materials and direct labor: MIM lowing er each Description Cost per Unit of Required Amount per Input Material A Unit of Product Material B $ pound 20 ounces Material C 7/pound 4 ounces Cutting labor 25/gallon 0.4 gallon Shaping labor 12/hour 45 minutes Finishing labor 15/hour 15 minutes 14/hour 75 minutes Manufacturing overhead consists of indirect materials, 50.60 per unit of product; indirect labor, $1,000 per month plus $0.75 per unit of product; factory maintenance, $17.000 per year plus $0.65 per unit of product; factory depreciation. $18,000 per year, and annual factory property taxes, $10,000. Selling and administrative expenses include the salaries of a sales manager, $40,000 per year, an office manager, $22,000 per year, and two salespersons, each of whom is paid a base salary of $15,000 per year and a commission of S4 per unit sold. Advertising and promotion of the product are done through a year-round media package program costing $1,500 per week. Required a. Analyze all cost and expense factors to determine a general formula (based on units of produc- tion) for total cost. b. Assuming a relevant range of 10,000 to 30,000 units, what is the estimated unit cost for produc- ing and selling 10,000 units? 25,000 units? Explain the variation in unit cost at the two levels of production If 22,000 units are produced and sold in a year, what selling price results in a net income before income tax of $75,000? wanufactur. ons C LO2. 3