Davy Crockett Co makes hats, mainly for fancy dress costumes. The company expected to produce 25,000 hats during the year which would be expected to incur $125,000 in fixed costs. The total cost of each hat is $30 (including fixed costs) and the company can sell them for $40 each. Sales during the year were 15,000 hats from a production volume of 20,000. Actual fixed costs were $80,000 and there was no opening inventory.

What is the marginal costing net profit for the year?