Sarah's Talking Dolls manufactures a computer chip used in the production of dolls for children. When 5,000 dolls are produced, the costs per part are:

Sam's Associates has offered to sell Sarah's Talking Dolls 5,000 parts for $5.75 each. If Sarah accepts the offer, fixed manufacturing costs will decrease by $1.00 per unit.
A) What is the relevant per unit cost to manufacture the part?
B) Which alternative is best for Sarah's Talking Dolls and by how much?
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