The Buffalo Corporation is working at full production capacity producing 10,000 units of a unique product, Everlast. Manufacturing cost per unit for Everlast is as follows: |(Click the icon to view the cost per unit information.) A customer, the Apex Company, has asked Buffalo to produce 2,500 units of Stronglast, a modification of Everlast. Stronglast would require the same manufacturing processes as Everlast. Apex has offered to pay Buffalo $47 for a unit of Stronglast plus half of the marketing cost per unit. Read the requirements. Requirement 1. What is the opportunity cost to Buffalo of producing the 2,500 units of Stronglast? (Assume that no overtime is worked.) Determine the formula for calculating the opportunity cost, then calculate the opportunity cost of producing the 2,500 units of Stronglast. ) Opportunity cost II Requiremen accept the Ap 2,500 units of to manufactu calculations. Jalo may - X Irlast and $45 per unit Data table your 9 Buffalo is cor from Chesap table for man of Everlast following Direct materials $ 9 Direct manufacturing labor 4 14 Manufacturing overhead $ Total manufacturing cost Manufacturing overhead cost per unit is based on variable cost per unit of $7 and fixed costs of $70,000 (at full capacity of 10,000 units). Marketing cost per unit, all variable. is $6. and the selling price is $54. 27