Tire and Spoke Manufacturing currently produces 1,000 bicycles per month. The following per unit data apply for sales to regular customers:

Direct materials $50

Direct manufacturing labor 5

Variable manufacturing overhead 14

Fixed manufacturing overhead 10

Total manufacturing costs $79

The plant has a capacity for 3,000 bicycles and is considering expanding production to 2,000 bicycles. What is the per-unit cost of producing 2,000 bicycles?

[[selectone]]

a. $79 per unit

b. $134 per unit

c. $158 per unit

d. $74 per unit