DualShaft Inc.manufactures a wide variety of parts for recreational boating,including boat engines.The component is purchased by OEM (original equipment manufacturers)such as Mercury and Honda,for use in the larger and more powerful outboards.The units sell for $790,and sales volume averages 38,000 units per year.Recently,DualShaft's major competitor lowered the price of the equivalent part to $710.The market was very competitive,and DualShaft realized it had to meet the new price or lose significant market share.The controller assembled the following data for the most recent year.
Cost and Usage for Production of 38,000 Units:

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The Answer of DualShaft Inc.manufactures a wide variety of parts for recreational boating,including boat engines.The component is purchased by OEM (original equipment manufacturers)such as Mercury and Honda,for use in the larger and more powerful outboards.The units sell for $790,and sales volume averages 38,000 units per year.Recently,DualShaft's major competitor lowered the price of the equivalent part to $710.The market was very competitive,and DualShaft realized it had to meet the new price or lose significant market share.The controller assembled the following data for the most recent year.
Cost and Usage for Production of 38,000 Units: