Winner's Circle, Inc., manufactures medals for winners of athletic events and other contests. Its manufacturing plant has the capacity to produce 2,400 medals each month. Current monthly production is 1,800 medals. The company normally charges $530 per medal. Variable costs and fixed costs for the current activity level of 75 percent of capacity are as follows:

Production Costs

Variable costs:

Manufacturing:

Direct labor $234,000

Direct material 207,000

Marketing 135,000

Total variable costs $576,000

Fixed costs:

Manufacturing $207,000

Marketing 135,000

Total fixed costs $342,000

Total costs $918,000

Variable cost per unit $320

Fixed cost per unit 190

Average unit cost $510

Winner's Circle has just received a special one-time order for 600 medals at $305 per medal. For this particular order, no variable marketing costs will be incurred. Cathy Donato, a management accountant with Winner's Circle, has been assigned the task of analyzing this order and recommending whether the company should accept or reject it. After examining the costs, Donato suggested to her supervisor, Gerard LePenn, who is the controller, that they request competitive bids from vendors for the raw material as the current quote seems high. LePenn insisted that the prices are in line with other vendors and told her that she was not to discuss her observations with anyone else. Donato later discovered that LePenn is a brother-in-law of the owner of the current raw-material supply vendor.

Compute both the new average unit cost and the incremental unit cost for the special order.