The Gym Company produces weights in different sizes and sells them to gym equipment distribution companies who in turn sell them to various gyms such as Boston Sports Club or Gold's Gym. The manufacturing plant occupies 75% of the total buildings and grounds. Approximately 80% of the utilities are for the manufacturing plant. External vendors provide all of the materials and supplies. The sales force is paid entirely on commissions. Advertising spending is set by contract at beginning of the year. At full capacity, the plant is capable of producin 500,000 units per year, but 2006 production volumes are below this maximum capacity level. Total 2006 Produc Cost per unit was $3.10, $0.60 of which was variable. Information on their 2006 costs and related inventory balances are listed in the table below. 31-Dec- During the Item 1-Jan-2006 2006 Year Raw materials inventory $60,000 $20,000: Work-in-process inventory 72,000 88,000 Finished goods inventory 40,000 50,000 |:| Total manufacturing costs $1,310,250 Goods available for sale |:\":| 1,334,250 Cost of goods sold 1, 284, 250 Purchases of raw materials |:\":|_ 164, 500 Marketing salaries |:||:|_ 236, 500 Non factory administrative , 235,000 salaries Factory maintenance staff , 154,000 salaries Building rental 250, 000 Utilities (Electricity, water, 120,000 phone...) indirect labor |:||:| 110000 Sales commissions (5% of sales) 98,400 Non factory administrative _ 235,000 salaries Factory maintenance staff _ 154,000 salaries Direct labor Building rental 250, 000 Advertising 148,000 Utilities (Electricity, water, 120,000 phone...) Indirect labor |:| 110,000 Sales commissions (5% of sales) |:| 98,400 Factory equipment depreciation 490,250 The company anticipates 2007 production volumes to increase by 10% over 2006. If total xed costs and the variable product cost per unit in 2006 remain the same in 2007, what are the anticipated total manufacturing costs to be incurred and the anticipated total unit production volume in 2007? O a) $1,319,300 & 459,250 O b) $1,325,300 & 469,250 O c) $1,294,750 & 417,500 0 d) $1,276,350,& 418,500 0 e) $1,319,600 & 459,750 0 1') None of the above