ankee Corporation manufactures a single product. The company has the following cost structure:

Variable costs per unit:
Production	$4
Selling and administrative	$1
Fixed costs in total:
Production	$12,000
Selling and administrative	$8,000

Last year, 4,000 units were produced and 3,500 units were sold. There were no beginning inventories.

Under absorption costing, the cost of goods sold for the year would be:

$28,000$24,500$17,500$14,000