Grouper Inc. is preparing its annual budgets for the year ending December 31, 2017. Accounting assistants furnish the data shown below. Product JB 50 Product JB 60 Sales budget: Anticipated volume in units 404,400 204,600 Unit selling price $21 $27 Production budget; Desired ending finished goods units 27,900 16,900 Beginning finished goods units 34,100 13,400 Direct materials budget: Direct materials per unit (pounds) 1 2 Desired ending direct materials pounds 32,900 18,100 Beginning direct materials pounds 43.900 11.100 Cost per pound $2 $4 Direct labor budget: Direct labor time per unit 0.3 0.6 Direct labor rate per hour $11 $11 Budgeted income statement: Total unit cost $13 $21 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $664,000 for product JB 50 and $364,000 for product JB 60, and administrative expenses of $542,000 for product JB 50 and $344,000 for product JB 60. Interest expense is $150,000 (not allocated to products), Income taxes are expected to be 30%. (a)