Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 32,000 Rets per year. Costs associated with this level of production and sales are given below: Total Unit $ 20 Direct materials Direct labor Vari able manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense 640,000 256,000 96,000 288,000 128,000 192,000 4 Total cost $50 $ 1,600,000 The Rets normally sell for $55 each. Fixed manufacturing overhead is constant at $288,000 per year within the range of 27,000 through 32,000 Rets per year