A ballpoint pen manufacturer had the following information:

Plastic tubes: top and tip .12 per unit

Ink .02 per unit

Direct Labor .02 per unit

Selling Price .40 per unit

Advertising $80,000

Managerial and secretarial salaries $200,000

Salespeople's commissions Factory 10 percent of selling price

overhead $120,000

Total available ballpoint pen market is 10 million pens (near this selling price).