The salespeople at Pronghorn, a notebook manufacturer, commonly pressured operations managers to keep costs down so the company could give bigger discounts to large customers. James, the operations supervisor, leaked the $$0\mathrm{.}65$ total unit cost to salespeople, who were thrilled, since that was slightly lower than the previous year's unit cost. Budgets were not yet finalized for the upcoming year, so it was unclear what the target unit cost would be$.$ James knew the current year's operating capacity was two million notebooks, and Pronghorn produced and sold just that many. The detailed breakdown of the $$0\mathrm{.}65$ total unit cost is as follows.

Direct material $$0\mathrm{.}10$

Direct labor $,0\mathrm{.}25$

Variable overhead $,0\mathrm{.}10$

Fixed overhead $,0\mathrm{.}20$

Total cost per unit $$0\mathrm{.}65$

$($a$)$

Your answer is partially correct.

What were Pronghorn's total fixed costs? If the average selling price was $$2\mathrm{.}15,$ how much gross margin did the company generate?What were Pronghorn's total fixed costs? If the average selling price was $$2\mathrm{.}15,$ how much gross margin did the company generate?

Total fixed costs

Gross margin

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Attempts: $2$ of $2$ used

$($b$)$

Your answer is partially correct.

If Pronghorn 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 $$2\mathrm{.}15,$ how much gross margin would be earned? $($Round per unit answers to $2$ decimal places, e$.$g$.15\mathrm{.}25.)$If Pronghorn incurs exactly the same total fixed costs but produces and sells only $1,600,000$ notebooks this coming year, what happens to the fixed cost per unit? In turn, what would the total cost per unit be$?$ If the average selling price stays at $$2\mathrm{.}15,$ how much gross margin would be earned? $($Round per unit answers to $2$ decimal places, e$.$g$.15\mathrm{.}25.)$

Fixed costs $$ by $ $$ per unit Total cost per unit

$ $$ per unit Gross margin $