Gardner Company produces plastic that is used for injection-molding applications such as gears for small motors. In 2013, the first year of operations, Gardner produced 5,600 tons of plastic and sold 3,360 tons. In 2014, the production and sales results were exactly reversed. In each year, the selling price per ton was $2,200, variable manufacturing costs were 15% of the sales price of units produced, variable selling expenses were 9% of the selling price of units sold, fixed manufacturing costs were $3,304,000, and fixed administrative expenses were $577,000.