Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 42,000 Rets per year. Costs associated with this level of production and sales are given below: Unit Total Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense $25$1,050,000 336,000 126,000 210,000 84,000 252,000 2 Total cost $49 $ 2,058,000 The Rets normally sell for $54 each. Fixed manufacturing overhead is constant at $210,000 per year within the range of 34,000 through 42,000 Rets per year