Question 20 52 pts Star Company produces a plastic courtroom set that includes a judge's bench, witness stand, jury box, and 25 people. The set is sold to exclusive children's toy stores for $200. The company has the capacity to produce 20,000 sets per year. Per unit costs to produce and sell one set at that activity level follows: Direct material cost per set $20 Direct labor cost per set 30 Variable manufacturing overhead per set 40 Variable selling cost per set 10 55 ($1,100,000 per year) Fixed manufacturing overhead Variable unit costs and total fixed manufacturing overhead costs are constant within the relevant range of 10,000 to 20,000 sets per year. A prominent Washington D.C. store, which has not previously purchased from Star Company, has approached the marketing manager about buying 5,000 sets for $170 each. No selling expenses would be incurred on this offer, but the Washington D.C. store wants the set to include five plastic briefcases. This request means that Star Company will incur an additional $2 variable manufacturing cost per unit, and an additional $5,000 fixed costs. The company is currently producing and selling 13,000 courtroom sets per year. What is the minimum amount per set that Star Company should accept to produce the 5,000 sets? capacity to produce 2000 sets per you Perunt costs to produce and love what were low Direct material cost per set $20 Direct Isbor cost per set Variable manufacturing overhead per set 40 Variable selling cost per set 55 151,100,000 per year Fixed manufacturing overhead 30 10 Variable unit costs and total fixed manufacturing overhead costs me constant within the relevant range of 10,000 to 20,000 sets per year. A prominent Washington DC. store, which has not previously purchased from Star Company approached the marketing manager about buying 5,000 sets for $170 each. No veling erpres would be incurred on this offer, but the Washington DC.store wants the set to Indude te pare briefcases. This request means that Star Company will incur an additional $2 variable manufacturing cost per unit, and an additional $5,000 foxed costs. The company is currently producing and selling 13,000 courtroom sets per year. What is the minimum amourt per settu Star Company should accept to produce the 5.000 sets? $93 $90 $103 $156 $92