EagleEye Ltd. produces and sells a single product, a wooden hand loom for weaving small items such as scarves. Selected cost and operating data relating to the product for two years are given below:

Selling price per unit . . . .............. . . . . . . . . . . . . . . . . . . ...................... 70

Manufacturing costs: Variable per unit produced:

Direct materials . . . . . . . . . . . . . . . . . . . . . . ........................................... 14

Direct labor . . ............................ . . . . . . . . . . . . . . . . . . . . . .............. 6

Variable manufacturing overhead . . . . . . . . ............................................ 3

Fixed manufacturing overhead per year . . . . . . ................................... 135000

Selling and administrative expenses:

Variable per unit sold . . . . . . . . . . . . . . . . . . . .................................... 5

Fixed per year . . . . . . . . . . . . . . . . . . . . . . . . ...................................... 85000