Gig Harbor Boating is the wholesale distributor of a recreational sailboat. Management provided the following data for budgeting purposes:

Budgeted unit sales $480$

Selling price per unit $ $1,960$

Cost per unit $ $1,350$

Variable selling and administrative expense $($per unit$)$ $ $40$

Fixed selling and administrative expense $($per year$)$ $ $225,000$

Interest expense for the year $ $12,000$