Sutherland manufactures and sells $110,000$ laser printers each month. A principal component part of each printer is its paper feed drive. Sutherlands plant currently has the monthly capacity to produce $150,000$ drives. The unit costs of manufacturing these drives $($up to $150,000$ per month$)$ are as follows:

Variable costs per unit:

Direct materials $...............................................$ $$45$

Direct labor $.......................................................$ $$25$

Variable manufacturing overhead $.....................................$ $$5$

Fixed costs per month:

Fixed manufacturing overhead $.......................................$ $$1,430,000$

Desk$-$Mate Printers has offered to buy $20,000$ paper feed drives from Sutherland to be used in its own printers.

Question $3-$ Compute the following:

The average unit cost of manufacturing each paper feed drive assuming that Sutherland manufactures only enough drives for its own laser printers.

The incremental unit cost of producing an additional paper feed drive.

The per$-$unit sales price that Sutherland should charge Desk$-$Mate to earn $$500,000$ in monthly pre$-$tax profit on the sale of drives to Desk$-$Mate.