Mason Corporation began operations at the beginning of the current year. One of the company's products, a refrigeration element, sells for $195 per unit. Information related to the current year's activities follows.

Variable costs per unit:Direct material$15Direct labor36Manufacturing overhead46Annual fixed costs:Manufacturing overhead$600,000Selling and administrative860,000Production and sales activity:Production (units)24,000Sales (units)20,000

Mason carries its finished-goods inventory at the average unit cost of production and is subject to a 30 percent income tax rate. There was no work in process at year-end.