Fastraq Inc is in the business of design and manufacture of bike chains for both professional and amateur cyclists. Two new titanium chain sets were introduced during the year - the Extreme and Smooth. They are currently selling for $110 and $155 respectively. The following data summarise the cost structure for the two chain sets:

Number of sets budgeted and produced Number of sets sold Direct labour hours per set Direct labour cost per hour Direct materials per set Smooth 43,000 40,000 $22 $45 Extreme 55,000 52,000 $22 $61