The salespeople at Coronado, a notebook manufacturer, commonly pressured operations managers to keep costs down so the companyr could give bigger discounts to large customers. Joseph, the operations supervisor, leaked the $0.70 total unit cost to salespeople, who were thrilled, since that was slightly lower than the previous year's unit cost. Budgets were not yet nalized for the upcoming year, so it was unclear what the target unit cost would be. Joseph knew the current year's operating capacity was two million notebooks, and Coronado produced and soldjust that many. The detailed breakdown of the $0.70 total unit cost is as follows. Direct material $0.05 Direct labor 0.15 Variable overhead 0.10 Fixed overhead 0.40 Total cost per unit $0.70 Your answer is correct. What were Coronado's total fixed costs? If the average selling price was $1.90, how much gross margin did the company generate? Total fixed costs 800000 Gross margin $ 2400000If Coronado incurs exactly the same total fixed costs but produces and sells only 1,600,000 notebooks this coming year, what happens to the fixed cost per unit? In turn, what would the total cost per unit be? If the average selling price stays at $1.90, how much gross margin would be earned? (Round per unit answers to 2 decimal places, e.g. 15.25.) Fixed costs Increased v by $ 0.10 per unit Total cost per unit LA 0.80 per unit Gross margin LA 1120000