Deleon Inc. is preparing its annual budgets for the year ending December 31, 2020. Accounting assistants furnish the data shown below.

		Product JB 50		Product JB 60
Sales budget:
Anticipated volume in units		403,700		203,300
Unit selling price		$23		$28
Production budget:
Desired ending finished goods units		27,900		19,300
Beginning finished goods units		31,600		12,600
Direct materials budget:
Direct materials per unit (pounds)		2		3
Desired ending direct materials pounds		33,600		16,700
Beginning direct materials pounds		43,200		14,800
Cost per pound		$3		$4
Direct labor budget:
Direct labor time per unit		0.3		0.6
Direct labor rate per hour		$12		$12
Budgeted income statement:
Total unit cost		$14		$22

An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $662,000 for product JB 50 and $365,000 for product JB 60, and administrative expenses of $543,000 for product JB 50 and $342,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%.