Jorge Company bottles and distributes Livit, a fruit drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 70 cents per bottle. For the year 2014, management estimates the following revenues and costs.

Net sales	$2,000,000	Selling expenses-variable	$ 80,000
Direct materials	290,000	Selling expenses-fixed	150,000
Direct labor	370.000	Administrative expenses