Canada Brewers Ltd. has just created a new division to manufacture and sell single-cup coffee makers under licence from a major single-cup coffee producer. The facility is highly automated and so has high monthly fixed costs, as shown in the following schedule of budgeted monthly costs. This schedule was prepared based on an expectation of a monthly production volume of 3,000 units During August, the following activity was recorded Units produced Units sold 3,000 2,200 $ 105 Selling price per unit Manufacturing costs Variable cost per unit Direct material Direct labour Variable overhead $ 20 18 14 $90,000 Total fixed overhead Selling and administrative costs Variable Fixed 5% of sales 17,600