Numbers : Selling price per fireplace $$420$

Manufacturing costs:

Variable per unit produced:

Direct materials $$135$

Direct labor $$43$

Variable manufacturing overhead $$37$

Fixed manufacturing overhead per year $$210,000$

Selling and administrative expenses:

Variable per unit sold $$45$

Fixed per year $$190,000$

Units in beginning inventory $0$

Units produced during the year $5,000$

Units sold during the year $4,500$