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Red Jeep Manufacturing currently produces 3,000 tires per month. The following total cost data for 3,000 tires applies to sales to regular customers: Direct

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Red Jeep Manufacturing currently produces 3,000 tires per month. The following total cost data for 3,000 tires applies to sales to regular customers: Direct materials $114,000 Direct manufacturing labor 42,000 Variable manufacturing overhead 57,000 Fixed manufacturing overhead Total 60,000 $273,000 Assume Red Jeep sells everything it produces. The plant is considering increasing production to 4,000 tires. If Red Jeep increases production to 4,000 tires, what is the new unit cost per tire? $101 $91 $86 $137

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