Bittman Company produces picture frames. During its first year of operations, the company produced 10,000 frames and sold 9,000 frames at $12 per frame. The company's cost information includes the following: Direct materials $2.00 per frame Direct labor $3.00 per frame Variable manufacturing overhead $1.00 per frame Variable selling and administrative expenses $3.00 per frame Fixed manufacturing overhead $20,000 per year Fixed selling and administrative expenses $5,000 per year