DC and Marvel would like to evaluate one of the product lines that they sell to defense department. Every month the Stark and Company produce an identical number of units, although the sales in units differ from month to month.

Selling price $111 109 Units in beginning inventory 400 360 Units produced 8,800 6900 Units sold 8,900 7200 Variable costs per unit: Direct materials $34 29 Direct labour $37 31 Variable manufacturing overhead $3 2 Variable selling and administrative $9 7 Fixed costs: Fixed manufacturing overhead $61,600 53,500 Fixed selling and administrative $169,100 145,000