Mary's Mugs produces and sells various types of ceramic mugs. The business began operations on January 1, year 1, and its costs incurred during the year include these:

Variable costs (based on mugs produced):
Direct materials cost	$	2,100
Direct manufacturing labor costs		22,770
Indirect manufacturing costs		1,070
Administration and marketing		2,020
Fixed costs:
Administration and marketing costs		12,000
Indirect manufacturing costs		4,160

On December 31, year 1, direct materials inventory consisted of 2,100 pounds of material. Production in that year was 14,000 mugs. All prices and unit variable costs remained constant during the year. Sales revenues for year 1 was $43,450. Finished goods inventory was $6,450 on December 31, year 1. Each finished mug requires 0.4 pounds of material. (Do not round intermediate calculations.)

Required:

a. Compute the direct materials inventory cost, December 31, year 1.

b. Compute the finished goods ending inventory in units on December 31, year 1. (Do not round intermediate calculations.)

c. Compute the selling price per unit. (Round your answer to 2 decimal places.)

d. Compute the operating profit (loss) for year 1.