The TigerCub Corporation is working at full production capacity producing 12,500 units of a unique product, Everlast. Manufacturing cost per unit for Everlast is as follows: |(Click the icon to view the cost per unit information.) A customer, the Apex Company, has asked TigerCub to produce 3,000 units of Stronglast, a modification of Everlast. Stronglast would require the same manufacturing processes as Everlast. Apex has offered to pay TigerCub $47 for a unit of Stronglast plus half of the marketing cost per unit. Read the requirements. Requirement 1. What is the opportunity cost to TigerCub of producing the 3,000 units of Stronglast? (Assume that no overtime is worked.) Determine the formula for calculating the opportunity cost, then calculate the opportunity cost of producing the 3,000 units of Stronglast. Opportunity cost Data table Requirements Direct materials $ 9 1. What is the opportunity cost to TigerCub of producing the 3,000 units of Stronglast? (Assume that no overtime is worked.) 2. The Chesapeake Corporation has offered to produce 3,000 units of Everlast for TigerCub so that TigerCub may accept the Apex offer. That is, if TigerCub accepts the Chesapeake offer, TigerCub would manufacture 9,500 units of Everlast and 3,000 units of Stronglast and purchase 3,000 units of Everlast from Chesapeake. Chesapeake would charge TigerCub $45 per unit to manufacture Everlast. On the basis of financial considerations alone, should TigerCub accept the Chesapeake offer? Show your calculations. 3. Suppose TigerCub en working at less than full capacity, producing 9,500 units of Everlast, at the time the Apex offer was made. Calculate the minimum price TigerCub should accept for Stronglast under these conditions. (Ignore the previous $47 selling price.) Direct manufacturing labor 5 13 Manufacturing overhead $ 27 Total manufacturing cost Manufacturing overhead cost per unit is based on variable cost per unit of $7 and fixed costs of $75,000 (at full capacity of 12,500 units). Marketing cost per unit, all variable, is $6, and the selling price is $54