Quality Industries manufactures large workbenches for industrial use. Yewell Hartnet, the Vice President for marketing at Quality Industries, concluded from market analysis that sales were dwindling for Quality's workbenches due to aggressive pricing by competitors. Quality's workbench sells for $1,140 whereas the competition's comparable workbench sells for $1,060. Yewell determined that a price drop to $1,060 would be necessary to protect its market share and maintain an annual sales level of 13,000 workbenches. Cost data based on sales of 13,000 workbenches:

	Budgeted Quantity			Actual Quantity			Actual Cost
Direct materials (pounds)		175,000			168,000			$3,450,000
Direct labor (hours)		72,800			71,500			825,000
Machine setups (no. of setups)		900			880			250,000
Mechanical assembly (machine hours)		273,000			281,250			3,750,000

The current cost per unit is (rounded to the nearest whole dollar):

Multiple Choice

$637.

$523.

$445.

$588.

$465.