The Buttal Corporation is working at production capacity producing 12,500 units of a unique product, Everlast Manufacturing cost per unit for Everlast is Encik then to view the cost per unit information) A customer the Apex Company has asked Buffalo to produce 3,000 units of Stronglast, a modification of Everlast. Stronglast would require the same manufacturing processes as Everlast. Apex has offered to pay Buffalo 556 for a unit of Stronglast plus half of the marketing cont per unit 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. Selling propet une - Total variable cost per unit) Total mig, cost per unit = Opportunity cost x Buffalo may accept the Apex offer . purchase 3.000 units of Everlast from Chesapeake Chesapeake would charge Buffalo $53 per unit to Requirement 2. The Chesapeake Corporation has offered to produce 3,000 units of Everlast for berast. On the basis of that is, Buffalo accepts the Chesapeake offer, Buffalo would manufacture 9.500 units of Everlast and 3,000 units of stronglast and If financial considerations alone should Buffalo accept the Apex offer? Show your calculations Buffalo se considering manufacturing 9,500 units of Everlast and 3,000 units of Stronglast and purchasing 3,000 units of Everlast from Chesapeake, Chesapeake would charge Buffalo $53 per unit to manufacture Everlast. Begin by completing the following table for manufactured Stronglastunts and purchased Everlast units Manufacture Purchase Stronglast Everlast Total selling units On the basis of fancial considerations alone. Buffalo should the Chesapeake offer. Requirement 3. Suppose Buffalo had been working at less than full capacity, producing 9,500 units of Everlast, at the time the Apex offer was made. Calculate the minimum price Buffalo should accept for Stronglas under these conditions. (ignore the previous $56 selling price) The minimum selling price would be $ Data table Direct materials 5 12 Direct manufacturing labor 4 Manufacturing overhead 15 Total manufacturing cost 5 31 Manufacturing overhead cost per unit is based on variable cost per unit of $10 and fixed costs of $62,500 (at full capacity of 12.500 units). Marketing cost per unit, all variable, is 52, and the selling price is $62