Page 1419. Problem 25-27B. Change the facts a bit. The numbers are the same. All savings mentioned in the facts are the same. But this is not flotation vests. Instead it is a testing kit for COVID-19. Florida needs more testing capacity. Nautical can help. Nautical has the capacity to manufacture 18,000 additional kits per month with its present plant capacity. Nautical wants to help its home state. The President of Nautical tells the accounting department he wants to sell to the State of Florida "at cost." The accounting manager tells the President that the cost is $15.24 per unit. This is $442,000 in cost divided by 29,000 units. The President knows the accounting manager is the son of the company founder and there is a long-standing rumor that the manager/son failed managerial accounting in college. The President asks you to check the figures before he calls the Florida Department of Public Safety with a special pricing offer for 18,000 testing kits per month. What is the right price per unit ("cost") for the special order?! P25-27B Identifying relevant information and making pricing decisions Nautical manufactures flotation vests in Tampa, Florida. Nautical's contribution margin income statement for the month ended December 31, 2018, contains the following data: NAUTICAL Income Statement For the Month Ended December 31, 2018 Sales in Units 29,000 Net Sales Revenue $551,000 Variable Costs: Manufacturing 116,000 Selling and Administrative 111,000 Total Variable costs 227,000 Contribution Margin 324,000 Fixed Costs: Manufacturing 123,000 Selling and Administrative 92,000 Total Fixed Expenses 215,000 Operating Income $ 109,000 Suppose Water Works wishes to buy 4,800 vests from Nautical. Nautical will not incur any variable selling and administrative expenses on the special order. The Nautical plant has enough unused capacity to manufacture the additional vests. Water Works has offered $15 per vest, which is below the normal sales price of $19