Lynch Company manufactures and sells a single product. The following costs were incurred during the companys first year of operations:

Variable costs per unit:
Manufacturing:
Direct materials	$	12
Direct labor	$	4
Variable manufacturing overhead	$	2
Variable selling and administrative	$	2
Fixed costs per year:
Fixed manufacturing overhead	$	370,000
Fixed selling and administrative	$	200,000

During the year, the company produced 37,000 units and sold 18,000 units. The selling price of the companys product is $55 per unit.