Discon Corporation manufactures a popular doll called Teardrops. Last year the company started with 11,600 dolls, produced 285,000 dolls, and ended the year with 9,600 dolls. Each doll was sold for $22. The actual unit cost for Teardrops is given below:

Direct material	$	2.55
Direct labour		0.40
variable overhead		2.90
Fixed overhead		8.65
Total unit cost	$	14.50

The only selling expenses were a commission of $3 per unit sold and advertising amounting to $366,000. Administrative expenses, all fixed, equalled $286,000. There were no beginning and ending work-in-process inventories.

Required: