Out of Eden, Inc., is planning to invest in new manufacturing equipment to make a new garden tool. The new garden tool is expected to generate additional annual sales of 9,200 units at $54.00 each. The new manufacturing equipment will cost $209,200 and is expected to have a 10-year life and $16,000 residual value. Selling expenses related to the new product are expected to be 4% of sales revenue. The cost to manufacture the product includes the following on a per-unit basis Direct labor Direct materials Fixed factory overhead-depreciation Variable factory overhead $9.20 30.00 2.10 4.60 $45.90 Total