Smart Mopeds manufactures mopeds. The following information pertains to the company's normal operations per month:

Output units	15,000 mopeds
Machine-hours	4,000 hours
Direct manufacturing labour hours	5,000 hours
Direct manufacturing labour per hour	$24
Direct materials per unit	$220
Variable manufacturing overhead costs	$342,000
Fixed costs:
Fixed manufacturing overhead costs	$1,200,000
Marketing and distribution costs	$1,125,000
Research and development costs	$900,000

Required:

What is the unit cost for establishing a minimum bid on a one-time-only special order of 1,000 mopeds from an overseas city if all cost relationships remain the same except for a one-time setup charge of $50,000?

A) $300.80

B) $309.50

C) $285.50

D) $360.50

E) $344.50

B. What is the unit cost when establishing a long-run price for mopeds?

A) $309.50

B) $325.48

C) $465.80

D) $484.50

E) $470.00