Winner's Circle, Inc., manufactures medals for winners of athletic events and other contents. Its manufacturing plant has the capacity to produce 10,000 medals each month. Current monthly production is 7,500 medals. The company normally charges $175 per medal. Variable costs and fixed costs for the current activity level of 75 percent of capacity are as follows:

Variable costs: Manufacturing: Direct labor Direct material Marketing Total variable costs Fixed costs: Manufacturing Marketing Total fixed costs Total costs Variable cost per unit Fixed cost per unit Average unit cost Production Costs ' 1 375,030 262, 500 137, 500 325,030 275,030 175,030 450,030 1,275,000 110 60 170