Walton Modems, Inc. makes modem cards that are used in notebook computers. The company completed the following transactions during year 1 . All purchases and sales were made with cash. 1. Acquired $840,000 of cash from the ounera. 2. Purchased $450,000 of manufacturing equipment. The equiponent han a $40,000 salvage value and a four-year useful 11 fe. 3. The company otarted and completed 7,000 nodems. Direct materials purchased and used asounted to $58 per unit. 4. Direct labor costs amounted to $43 per unit. 5. The cost of manufactaring nupplies used anounted to $3 per unit. 6. The company paid 568,000 to rent the nanufacturing faclility. 7. Magnificent nold all 7,000 units at a cash price of 5210 per unit. (Hint: It will be necessary to deternine the manufacturing conts in order to record the cost of goods wold.) 8. The ables ataft was paid a $7 per unit salen comniasion. 9. Paid $57,000 to purehase equipnent for adeinistrative offices. The equipeent vas expected to have a $4,800 salvage value and a three-year useful 1 ilfe. 0. Adriniatrative expenses ceneisting of office rental and aalarien amounted to 574,650 . Required a. Based on these data, identify each cost incurred by the company as (1) fixed versus variable relative to the number of units produced and sold; and (2) product versus selling, general, and administrative (SG\&A). The solution for the first item is shown as an example. b. Complete the following table to indicate the product cost per unit assuming levels of production of 7,000,8,000,9,000, and 10,000 . Based on these data, identify each cost incurred by the company as (1) fixed versus variable relative to the number of units produced and sold; and (2) product versus selling, general, and administrative (SG\&A). The solution for the first item is shown as an example. Complete the following table to indicate the prodoct cost per unit assuming levels of production of 7,000,8,000,9,000, and 10,000. (Do not round intermediate calculations. Round "Cost per unit" to 2 decimal places.)