Optical Instruments produces 2 models of binoculas. Information for each is model is as follows: Model 100 Model 101 Sales price per unit $200 $135 Costs and expenses per unit: Direct materials $51 $38 Direct labor 33 30 Manufacturing overhead (applied at the rate of $18 per machine-hour, 1/3 of which is fixed and 2/2 variable) 36 18 Variable selling expenses 30 15 Total costs and expenses per unit $150 $101 Profit per unit 50 34 Machine hours required to product one unit 2 1 Total manufacturing overhead amount to $180,000 per month, one third of which is fixed. The demand for either product is sufficient to keep the plant operating at full capacity (10,000 machine hours per month). Assume that only one product is to be produced in the future.