Traditional product performance report for a two-year period Erie Information Products makes drums for laser printers. Their Al-Xl drum has been in production for two years, and the firm plans to replace this product with the new A1-X2 drum starting next month. Below are sales and production data for the two years the product was in production.

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Year 1 Year 2 Production and sales quantity in units 10,000 15,000 Selling price per unit...... $145 $125 Manufacturing costs: Direct materials $450,000 $720,000 Direct labor Manufacturing overhead 120,000 150,000 380,000 600,000