Miller computer co. will manufacture 28,000 laptops in a year during one shift. there are fixed manufacturing costs of $2,000,000 per year and labor costs $9,200,000. miller computer co. would like to be able to manufacture 56,000 laptops next year and is considering adding a second shift. the unit labor cost for the second shift would be 25% higher than the day shift, but the total fixed manufacturing costs would increase only to $2,400,000.

a) what is the manufacturing cost per unit of the single shift model?

b) what is the average manufacturing cost per unit if miller computer co. runs 2 shifts?

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