Ovation Company has a single product called a Bit. The company normally produces and sells 33,600 Bits each year at a selling price of $34 per unit. The company's unit costs at this level of activity are given below:

Direct materials $11.70 Direct labour 3.60 Variable manufacturing overhead 2.40 Fixed manufacturing overhead 3.90($131,040 total) Variable selling expenses 2.70 Fixed selling expenses 3.60($120,960 total) Total cost per unit $27.90