Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 5,800 rackets and sold 4,700. Each racket was sold at a price of $88. Fixed overhead costs are $74,240, and fixed selling and administrative costs are $65,000.

The company also reports the following per unit costs for the year:

Variable production costs $ 24.80

Variable selling and administrative expenses $ 1.80