The Buffalo Corporation is working at full production capacity producing 13,000 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.) Stronglast plus half of the marketing cost per unit. Read the requirements. Requirement 1. What is the opportunity cost to Buffalo of producing the 3,000 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 3,000 units of Stronglast. Requirements Manufacturing overhead cost per unit is based on variable cost per unit of $8 and fixed costs of $39,000 (at full capacity of 13,000 units). Marketing cost per unit, 1. What is the opportunity cost to Buffalo of producing the 3,000 units of Stronglast? (Assume that no overtime is worked.) 2. The Chesapeake Corporation has offered to produce 3,000 units of Everlast for Buffalo so that Buffalo may accept the Apex offer. That is, if Buffalo accepts the Chesapeake offer, Buffalo would manufacture 10,000 units of Everlast and 3,000 units of Stronglast and purchase 3,000 units of Everlast from Chesapeake. Chesapeake would charge Buffalo $34 per unit to manufacture Everlast. On the basis of financial considerations alone, should Buffalo accept the Chesapeake offer? Show your calculations. 3. Suppose Buffalo had been working at less than full capacity, producing 10,000 units of Everlast, at the time the Apex offer was made. Calculate the minimum price Buffalo should accept for Stronglast under these conditions. (Ignore the previous $36 selling price.)