Current Attempt in Progress $($b$)$

Your answer is partially correct.

If Sandhill incurs exactly the same total fixed costs but produces and sells only $1,600,000$ notebooks this coming year, what

happens to the fixed cost per unit? In turn, what would the total cost per unit be$?$ If the average selling price stays at $$1\mathrm{.}90,$ how

much gross margin would be earned? $($Round per unit answers to $2$ decimal places, e$.$g$.15\mathrm{.}25.)$

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The salespeople at Sandhill, a notebook manufacturer, commonly pressured operations managers to keep costs down so the company

could give bigger discounts to large customers. Steven, the operations supervisor, leaked the $$0\mathrm{.}80$ total unit cost to salespeople, who

were thrilled, since that was slightly lower than the previous year's unit cost. Budgets were not yet finalized for the upcoming year, so

it was unclear what the target unit cost would be$.$ Steven knew the current year's operating capacity was two million notebooks, and

Sandhill produced and sold just that many. The detailed breakdown of the $$0\mathrm{.}80$ total unit cost is as follows.

$($a$)$

Your answer is correct.

What were Sandhill's total fixed costs? If the average selling price was $$1\mathrm{.}90,$ how much gross margin did the company generate?

Total fixed costs

$

Gross margin

$

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