Mazeppa Corporation sells relays at a selling price of $28 per unit. The company's cost per unit, based on full capacity of 160,000 units, is as follows:

Direct material$6

Direct labor4

MOH (2/3 is variable )9

Mazeppa has been approached by a distributor in Montana offering to buy a special order consisting of 30,000 relays. Mazeppa has the capacity to fill the order. However, it will incur an additional shipping cost of $2 for each relay it sells to the distributor.

a-Mazeppa is currently operating at a level of 100,000 units, what will be the unit price to charge the distributor which will generate an increase in operating income of $2 per unit?

b-Mazeppa is currently operating at full capacity, what will be the unit price to charge the distributor which will generate an increase in operating income of $60,000 more than it would be without accepting the special order?