Progress, Inc. has manufacturing capacity of15,000 units. Last year, the company manufactured

12,000 units and incurred the cost indicated below. The anticipated demand for this year is 20,000 units. To achieve this level the company would need to lease new equipment, resulting in a 40 percentincrease in equipment lease costs and a 20 percent increase in utility costs.

a. Calculate the unit cost and total cost of 14,000 units are produced.

b. Calculate the unit cost and total cost if 20,000 units are produced.