Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations Variable costs per unit: Manufacturing: 12 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative $324,000 $234,000 During the year, the company produced 27,000 units and sold 23,000 units. The selling price of the company's product is $42 per unit