Ovation Company has a single product called a Bit. The company normally produces and sells 28,800 Bits each year at a selling price of $32 per unit. The company's unit costs at this level of activity are given below:

Direct materials $12. 30 Direct labour 3.00 Variable manufacturing overhead 1. 80 Fixed manufacturing overhead 3.30 ($95, 040 total) Variable selling expenses 2.10 Fixed selling expenses 3.00 ($86, 400 total) Total cost per unit $25. 50