Bill Johnson, sales manager, and Diane Buswell, controller, at Current Designs are beginning to analyze the cost considerations for one of the composite models of the kayak division. They have provided the following production and operational costs necessary to produce one composite kayak.

Kevlar		$240	per kayak
Resin and supplies		$190	per kayak
Finishing kit (seat, rudder, ropes, etc.)		$180	per kayak
Direct Labor		$480	per kayak
Selling and administrative expensesvariable		$480	per kayak
Selling and administrative expensesfixed		$112,800	per year
Manufacturing overheadfixed		$240,000	per year

Bill and Diane have asked you to provide a cost-volume-profit analysis, to help them finalize the budget projections for the upcoming year. Bill has informed you that the selling price of the composite kayak will be $2,200.

(a)

Calculate unit variable costs.

Unit variable costs

$enter the unit variable costs in dollars

per unit