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 $1,640 whereas the competition's comparable workbench sells for $1,460. Yewell determined that a price drop to $1,460 would be necessary to protect its market share and maintain an annual sales level of 14,000 workbenches.

Cost data based on sales of 14,000 workbenches:

	Budgeted Quantity			Actual Quantity			Actual Cost
Direct materials (pounds)		180,000			173,000			$3,455,000
Direct labor (hours)		74,800			74,000			827,500
Machine setups (no. of setups)		1,400			1,080			255,000
Mechanical assembly (machine hours)		30,800			283,750			3,760,000

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

Multiple Choice

• $544.

• $479.

• $421.

• $593.

• $401.