Nickel Company makes a single product with a price of $70 per unit and variable cost of $46 per unit. Production at Nickel Company is constrained by machine hours. Each product requires 2 machine hours, and there are 1,000 machine hours available for the upcoming period. Fixed manufacturing cost is allocated to products using machine hours as the cost driver and a cost driver rate of $20 per machine hour. Planned production is 400 units. 

Required 

(a) Nickel Company has just received a request to produce and supply 50 units of a new product that will have a variable cost of $20 per unit and will require 2.5 machine hours. What is the minimum price that Nickel Company should charge per unit for this order? 

(b) Using the information in part (a), assume now that the order is for 100 units. If the order is accepted, all 100 units must be supplied and Nickel Company would sacrifice whatever production of the existing product is needed to fill the order. If production of the current product is reduced by any amount, Nickel Company must pay a penalty of $1,500 to its existing customers. What is the minimum price that Nickel Company should charge per unit for this order?