manufacturing costs for flanges are $$25,000$ per period. Period $($non$-$manufacturing$)$ costs associated with flanges are $$10,000$ per period, and are fixed.

Requirements

Fred's Flasks, sells flanges for $$8\mathrm{.}50$ each. Can Graham sell below Fred's price and still make a profit on the flanges? Assume Graham produces and sells $7,000$ flanges this period.

How would your answer to requirement $1$ differ if Graham's Glassworks made and sold $10,000$ flanges this period? Why? What does this indicate about the use of unit cost in decision making?

Begin by determining the formula used to calculate the fotal cost per unit. Choose the correct answer below.

A$.($Materials cost per unit $+$ Wage rate per hour$)$ Units produced and sold $=$ Total cost per unit

B$.($Total fixed costs $+$ Total variable costs$)$ Units produced and sold $=$ Total cost per unit

C$.($Total fixed costs $+$ Total variable costs$)$ Materials cost per unit $=$ Total cost per unit

D$.($Total fixed costs $+$ Total variable costs$)-$ Wage rate per hour $=$ Total cost per unit