(Not a repeat question.) The Gym Company produces weights in different sizes and sells them to gym equipment distribution companies who in turn sell them to various gyms such as Boston Sports Club or Gold's Gym. The manufacturing plant occupies 70% of the total buildings and grounds. Approximately 80% of the utilities are for the manufacturing plant. External vendors provide all of the materials and supplies. The sales force is paid entirely on commissions. Advertising spending is set by contract at beginning of the year. At full capacity, the plant is capable of producing 500,000 units per year. This year, The Gym Company manufactured and sold 400,000 units. Information on their costs is listed in the table below. Item 1-Jan-2006 31-Dec-2006 During the Year Raw materials inventory $60,000 $20,000 lwork-in-process inventory 72,000 88,000 Finished goods inventory 40,000 50,000 Total manufacturing costs $1,310,250 Goods available for sale 1,334,250 Cost of goods sold 1,284,250 Purchases of raw materials $164,500 Marketing salaries 236,500 Non factory administrative salaries 235,000 Factory maintenance staff salaries 154,000 Direct labor Building rental 250,000 Advertising 148,000 Utilities (Electricity, water, phone...) 120,000 Indirect labor 110,000 Sales commissions (5% of sales) 98,400 Factory equipment depreciation 365,000 The average product cost per unit, as defined by GAAP, of products produced in manufacturing in 2006 was: $3.28 $3.21 $3.24 Some other amount Cannot be determined