Belmain Co. expects to maintain the same inventories at the end of 2017 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: Estimated Fixed Cost Estimated Variable Cost (per unit sold) Production costs: Direct materials Direct labor $19 13 $342,800 10 Factory overhead Selling expenses Sales salaries and commissions 71,200 Advertising 24,100 Travel 5,400 Miscellaneous selling expense 5,900 Administrative expenses: Office and officers' salaries 69,600 Supplies 8,600 2 Miscellaneous administrative expense Total 8,080 $535,680 2 $54 It is expected that 5,580 units will be sold at a price of $270 a unit. Maximum sales within the relevant range are 7,000 units