Q2.What would be the amount of loss (profit) per unit if Garner sells to Cheap at $700 per unit?(Do not round your intermediate calculations. Loss amounts should be indicated with a minus sign. Round your answer to 2 decimal places.)

Amount of profit (loss) = per unit

Q3.What is the amount of loss (profit) per unit at the $786.44 selling price per unit for units sold to SC?(Loss amounts should be indicated with a minus sign. Round your intermediate calculations to 2 decimal places.)

Amount of profit (loss)= per unit

Garner Industries manufactures precision tools. The firm uses an activity-based costing system. CEO Deb Gamer is very proud of the accuracy of the system in determining product costs. She noticed that since the installment of the ABC system 10 years earlier, the firm had become much more competitive in all aspects of the business and earned an increasing amount of prots every year. In the last two years, the rm sold 0.677 million units to 3,000 customers each year. The manufacturing cost is $600 per unit. In addition, Garner has determined that the orderfilling cost is $49.72 per unit. The $798.00 selling price per unit includes 14% markup to cover administrative costs and profits. The order-lling cost per unit is determined based on the rm's costs for order-filling activities. Order-filling capacity can be added in biocks of 60 orders. Each block costs $120,000. In addition, the firm incurs $1,300 order-filling costs per order. Garner serves two types of customers designated as PC (Preferred Customer) and SC (Small Customer). Each of the 100 PCs buys, on average, 5,000 units in two orders. The firm aiso sells 177,000 units to 1,000 SCs. On average each SC buys 177 units in 10 orders. Ed Cheap, a buyer for one PC, complains about the high price he is paying. Cheap claims that he has been offered a price of $700 per unit and threatens to take his business elsewhere. Garner does not give in because the $700 price Cheap demands is below cost. Besides, she has recently raised the price to SC to $786.44 per unit and experienced no decline in orders. Required: 1. Demonstrate how Garner arrives at the $49.72 order-filling cost per unit. 2. What would be the amount of loss (profit) per unit if Garner sells to Cheap at $700 per unit? 3. What is the amount of loss (profit) per unit at the $786.44 selling price per unit for units sold to SC? Complete this question by entering your answers in the tabs below. Requiredi Requiredz ' Required3 ' Demonstrate how Garner arrives at the $49.72 order-lling cost per unit Total number of orders Number of orders per block Total number of blocks Cost per block Total cost of order biocks Total number of orders Per order order-lling cost Total cost of per order lling Total order-iling cost $ 0 Total units sold Order-lling cost per unit $ 49.72 Required 2 )