Manual Company sells goods to Nolan Company during 2017. It offers Nolan the following rebates based on total sales to Nolan. If total sales to Nolan are10,000units, it will grant a rebate of2%. If it sells up to20,000units, it will grant a rebate of4%. If it sells up to30,000units, it will grant a rebate of6%. In the first quarter of the year, Manual sells11,000units to Nolan at a sales price of $110,000. Manual, based on past experience, has sold over40,000units to Nolan, and these sales normally take place in the third quarter of the year.