The Sloane Company specializes in producing a set of wood patio furniture consisting of a table and four chairs. The set enjoys great popularity, and the company has orders for 3,000 sets per year. Annual cost data at this level of production follow: Required: Prepare an answer sheet with the column headings shown below. Enter each cost item on your answer sheet, placing the dollar amount under the appropriate headings. As examples, this has been done already for the first two items in the list above. Note that each cost item is classified in two ways: first, as a variable or fixed cost, with respect to the number of units produced and sold: and second, as a selling and administrative cost or a product cost. (If the item is a product cost, it should also be classified as either direct or indirect as shown.) Total the dollar amounts in each of the columns in (1) above. Compute the average product cost per patio set. Assume that production falls to 2, 800 sets annually. Would you expect the average product cost per patio set to increase, decrease, or remain unchanged? Explain. No computations are necessary. Refer to the original data. The president's brother-in-law has considered making himself a patio set and has priced the necessary materials at a building supply store. The brother-in-law has asked the president if he could purchase a patio set from the Sloane Company "at cost, " and the president agreed to let him do so. a. Would you expect any disagreement between the two men over the price the brother-in-law should pay? Explain. What price does the president probably have in mind? The brother-in-law? b. Since the company is operating at full capacity, what cost term used in the chapter might be justification for the president to charge the full, regular price to the brother-in-law and still be selling "at cost