Baseball Products manufactures a single product with the following full unit costs at a volume of 2,000 units:

Direct materials	$ 900
Direct labor	360
Manufacturing overhead*	610
Selling expenses (50% variable)	300
Administrative expenses**	290
Total per unit	$2,460

*Note that per unit manufacturing overhead costs include $840,000 fixed costs

**Note that per unit administrative expenses include $500,000 fixed costs.

A company recently approached Baseball