Ridez Manufacturing Currently Produces 1,000 Bicycles Per Month The Plant Has Capacity for 3,000 Bicycles and Is Considering

Multiple Choice

Ridez Manufacturing currently produces 1,000 bicycles per month.The following per unit data apply for sales to regular customers: $\begin{array}{lr}\text { Direct materials } & \$ 50 \\\text { Direct manufacturing labor } & 8 \\\text { Variable manufacturing overhead } & 12 \\\text { Fixed manufacturing overhead } & \underline{15} \\{\text { Total manufacturing costs }} & \$ 85\end{array}$ The plant has capacity for 3,000 bicycles and is considering expanding production to 2,000 bicycles.What is the per unit cost of producing 2,000 bicycles?

A) $78.50 per unit
B) $170 per unit
C) $72.50 per unit
D) $77.50 per unit