Required information Problem 16-30 (Algo) Relevant costs, special sales order-idle versus full capacity LO 16-2, 163 The following information applies to the questions displayed below] Petro Motors incorporated (PMI) produces small gasoline-powered motors for use in lawn mowers The company has been growing steadily over the past five years and is operating at full capacity. PMi recently completed the addition of new plant and equipment at a cost of $8,400,000, thereby increasing its manufacturing capacity to 106,000 motors annually. The addition to plant and equipment will be depreciated on a straightefine basis over 10 years Sales of motors were 63,000 units prior to the completion of the additional capacity Cost records indicated that manufacturing costs had totaled $63 per motor, of which $51 per motor was considered to be variable manufacturing costs. PMI has used the volume of activity at full capacity as the basis for applying fixed manufacturing overhead. The normal selling price is $86 per motor, and PMI pays a 5% commission on the sale of its motors. LawnPro com offered to purchase 38,000 motors az a price of $63 per unit to test the vability of distributing lawn mower replocement motors through its website. PMi would be expected to produce the motors, store them in its warehouse, and ship individual motors to LawnPro com customers. As orders are placed directly through the LawnPro.com website, they would be forwatded instantly to PMI No commissions will be paid on this special sales order, and freight charges will be paid by the customef purchasing a motor Problem 1630 (Algo) Part a Required: a. Calculate the cost per motot, for cost accounting purposes, aftet completion of the additional plant capacity