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 70% 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 producing 500,000 units per year. This year, The Gym Company manufactured and sold 400,000 units. Information on their costs is listed in the table below. 1.Jan-2006 31-Dec-2006 During the 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 salaries 235,000 Factory maintenance staff salaries 154,000 Direct labor Building rental 250,000 Advertising 148,000 Utilities (Electricity, water, phone...) 120,000 Indirect labor 110,000 Sales commissions (5% of sales) 98,4001 Factory equipment depreciation 365,000 Assume total fixed costs (product and period) were $1,250,000 and variable costs (product and period) per unit were $3.50 in 2006. Projected unit volume in 2007 is 480,000 units. Assuming The Gym Company's cost structure remains the same as in 2006, the total cost (product and period) per unit in 2007 will be: $6.63 $6.00 $6.10 Some other amount Cannot be determined