Cinquante Company expects to sell 100,000 units of its product next year, which would generate total sales of $12 million. Management predicts that pretax net income for next year will be $3,000,000 and that the contribution margin per unit will be $40.

(a)	Compute next year's total expected variable costs. (Omit the "$" sign in your response.)

Variable costs

$

(b)	Compute next year's total expected fixed costs. (Omit the "$" sign in your response.)

Fixed costs

$