Handy Household Products, Inc., is a multiproduct company with several manufacturing plants. The Shreveport Plant manufactures and distributes two household cleaning and polishing compounds, standard and commercial, under the Clean & Bright label. The forecasted operating results for the first six months of the current year, when 160,000 cases of each compound are expected to be manufactured and sold, are presented in the following statement. CLEAN & BRIGHT COMPOUNDS-SHREVEPORT PLANT Forecasted Results of Operations For the Six-Month Period Ending June 30 (in thousands) Total Standard Commercial $8,320 $13,440$21,760 6,000 Sales 7,040 8,960 Cost of goods sold Gross profit Selling and administrative $1,280 $ 4,4805,760 expenses. $1,664 918 $2,624 $4,288 Variable Fixed 2,400 $ 4,106 6,688 $ 374$(928) 1,482 Total selling and $2,582 administrative expenses Income (loss) before taxes $(1,302) The fixed selling and administrative expenses are allocated between the two products on the basis of dollar sales volume. The standard compound sold for $52 a case and the commercial compound sold for $84 a case during the first six months of the year. The manufacturing costs, by case of product, are presented in the schedule below. Each product is manufactured on a separate production line. Annual normal manufacturing capacity is 320,000 cases of each product. However, the plant is capable of producing 370,000 cases of standard compound and 470,000 cases of commercial compound annually