3. Suppose that Reagan would like to lower the break-even units to 7,500. The company does not believe that the price or fixed cost can be changed. Calculate the new unit variable cost that would result in break-even units of 7,500. If required, round your intermediate computations and final answer to the nearest cent.

The master manufacturing company has just announced a tender offer for its own common stock. master is offering to buy up to 100% of the company's stock at $20 per share contingent on at least 64% of the outstanding shares being tendered. after the announcement of the offer, the stock closed on the nyse up 2.50 at $18.75. a customer has 100 shares of master stock in his cash account. the customer tells you that he wishes to "cash out" his position. you should recommend that the customer: