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(Not a repeat question.) Robotics Inc. assembles solar cells in a highly automated environment with a JIT inventory system. The manufacturing plant occupies 50% of the total buildings and grounds. Robotics has a small highly skilled and flexible labor force that has a lifetime employment guarantees. Factory supplies are used in the production of solar cells. About 25% of the plant's utility costs represent connection charges; the rest vary with production. External vendors provide all of the materials and supplies. Sales force is paid entirely on commissions. Advertising spending is set by contract at the beginning of the year. At full capacity, the plant is capable of producing 100,000 units per year. Last year Robotics manufactured and sold 94,000 units for the costs listed below. Cost Item Amount Direct Materials & Parts $300,000 Direct Labor 350,000| Production Supervisory Salaries 100,000l Factory Supplies 200,000' Plant Utilities 60,000l Sales Commissions 350,000 Building/Grounds Maintenance 40,000 Advertising 100,000 Administrative Salaries 400,000 Total $190,000 The total variable costs last year were: f' $690,000 0 $910,000 .7) $395,000 .73 $350,000