Yukon Yoga is a producer of high-quality yoga mats in Canada. The company has recently begun exporting to several international clients. A gym chain in London, UK has approached Yukon Yoga Mats and asked for a quote for a large, recurring order of mats for its fitness centers. The client requested customized branding on the yoga mats with the gym’s logo. To print these on the yoga mats, Yukon Yoga will need to purchase a new engraving machine. The incoterm agreed upon is CPT. The quote requested is for 4,000 units. The company does not need to acquire any new machinery or overhead to fulfill this order (other than the engraving machine) and has enough capacity in its existing facilities.

The cost to produce the yoga mats domestically is as follows:

Direct Materials per unit: $18.50
Direct Labour per unit: $0.75
Variable Manufacturing Overhead per unit: $4.25
Fixed Manufacturing Overhead per unit: $5.50
Transaction fees per unit (domestic only): $1.50
The following costs have been estimated for exporting. The company considers its activity base to be the number of units sold.

Freight Cost by Boat (less-than-container load): $1,100
Domestic Transportation to Port of Halifax (by Truck): $650
Domestic Transportation from Port of London to client location in London (by truck): $300
Strapping and Marking Fees per unit: $250
Time spent configuring and setting up the new machine: $700
Time and Cost for an existing salaried employee to prepare documentation & customs declarations: $200
Demurrage Fee in Canada per order: $300
Insurance: 2% of the value of goods (including freight)
Customs importation fees: $200
New Machine Required for custom packaging for the gym chain: $18,000
Transaction fees per order (wire transfer): $50
Time for an existing salaried employee to oversee business development and customer service: $250
The company is aware that some of these costs might not be relevant to this export situation and need your help to perform some calculations. Based on the information provided, answer the following questions:

Calculate the domestic cost per unit using absorption costing.