The following information relates to a company with a relevant range of activity from 8,000 units to 13,000 units. They are currently producing and selling 10,000 units. The average cost per unit is $7.20 for direct materials, $3.80 for direct lobor, and $3.80 for variable manufacturing overhead. The average fixed cost per unit is $14.00 for fixed manufacturing overhead, $2.60 for fixed selling expenses and S1,60 for fixed administrative expenses. Variable selling expenses are $.40 per unit and variable administrative expenses are $ 30 per unit Required: (For questions a.-d. assume that 12,000 units are produced and sold.) a. Calculate the total amount of variable cost for the units sold b. Calculate the variable cost per unit sold. (Round "Per unit" answer to 2 decimal places) c. Calculate the total amount of fixed manufacturing costs. d. Calculate the average fixed manufacturing cost per unit produced. (Round "Per unit answer to 2 decimal places.) e Calculate the incremental manufacturing cost the company will incur if production increases from 10,000 to 10,001 units. (Round "Per unit answer to 2 decimal places) Total variable costs for 12,000 units b. Variable cost per unit for 12.000 units Total food manufacturing overhead cost for 12,000 units d Average fixed manufacturing cost for 12,000 units e incremental manufacturing cost A company is deciding between purchasing two machines. Machine A costs $502,000 and Machine 8 costs $443,000. The purchase is to replace a machine that was purchased 11 years ago for $470.000. The old machine was used to make product XYZ until it broke down tast week. Unfortunately, the old machine cannot be repaired Management has decided to buy Machine B. It has less capacity than Machine A but enough to continue making product XYZ Management also considered, but rejected, the alternative of simply dropping product XYZ. If that were done. Instead of investing $443,000 in the new machine, the money could be invested in a project that would return a total of $487,000 In making the decision to invest in Machine B. the sunk cost is Multiple Choice $470.000 $502.000 $487000 $143.000