During year $1,$ Thornton Manufacturing Company incurred $$86,000,000$ of research and development $($R&D$)$ costs to create a long$-$life battery to use in computers. In accordance with FASB standards, the entire R&D cost was recognized as an expense in year $1.$ Manufacturing costs $($direct materials, direct labor, and overhead$)$ are expected to be $$50$ per unit. Packaging, shipping, and sales commissions are expected to be $$14$ per unit. Thornton expects to sell $2,000,000$ batteries before new research renders the battery design technologically obsolete. During year $1,$ Thornton made $439,000$ batteries and sold $390,000$ of them.