$70 each will be sold at Barnes. $2,800 per year are the non depreciation fixed costs, and $35 per unit are the variable costs.

$70 each will be sold at Barnes. $2,800 per year are the non depreciation fixed costs, and $35 per unit are the variable costs. The initial investment of $6,000 will be depreciated straight-line over its useful life of 5 years to a final value of zero, and 10% is the discount rate.