During year $1,$ Campbell Manufacturing Company incurred $$96,800,000$ of research and development $($R&D$)$ costs to create a long$-$life battery to use in computers. In accordance with FASB standards, the entire R&D cost was recognized as an expense in year $1.$ Manufacturing costs $($direct materials, direct labor, and overhead$)$ are expected to be $$64$ per unit. Packaging, shipping, and sales commissions are expected to be $$16$ per unit. Campbell expects to sell $2,200,000$ batteries before new research renders the battery design technologically obsolete. During year $1,$ Campbell made $446,000$ batteries and sold $399,000$ of them.