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Chill Products manufactures smartItemthermostats for home climate control (HVAC) systems. One of its products, the...

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Accounting

Chill Products manufactures smartItemthermostats for home climate control (HVAC) systems. One of its products, the Hello Home model, sells for $75.00 and has manufacturing, costs given in the table.Hi's DIY Stores has requested 5,000Direct MaterialsDirect LaborVariable overheadFixed overhead ($2,700,000 per year)TotalCost,130.1014,0C7.009.0060.00thermostats from Chill. Hi's is offering to pay aunit price of $65.00 per thermostat. The special order items could be based on the Hello Home model but Chill estimates added costs per unit of $7.00 for materials, $2.00 for labor, and $1.0 for variable overhead would be needed. Chill has the capacity to produce tha special order units without affeeting its regular production of 25,000 units per month. Chill would need to rent testing equipment costing $15,000 to meet HI's quality control standards.What is the total variable cost Chill would incur to fulfill the Hi's order?

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