Fresno Industries Inc. manufactures and sells high-quality camping tents. The company began operations on January 1 and operated at 100% of capacity (153,000 units) during the first month, creating an ending inventory of 18,000 units. During February, the company produced 135,000 units during the month but sold 153,000 units at $570 per unit. The February manufacturing costs and selling and administrative expenses were as follows:

	Number of Units	Unit Cost	Total Cost
Manufacturing costs in February 1 beginning inventory:
Variable	18,000		$285.00		$5,130,000
Fixed	18,000		23.00		414,000
Total		$308.00		$5,544,000
Manufacturing costs in February:
Variable	135,000		$285.00		$38,475,000
Fixed	135,000		26.50		3,577,500
Total		$311.50		$42,052,500
Selling and administrative expenses in February:
Variable	153,000		17.70		$2,708,100
Fixed	153,000		2.00		306,000
Total		19.70		$3,014,100