Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 40,000 Rets per year. Costs associated with this level of production and sales are given below: Total Direct materials Direct labor Variable manufacturing overhead. Fixed manufacturing overhead Variable selling expense Fixed selling expense Total cost Unit $ 20 $ 800,000 8 320,000 3 120,000 9 360,000 4 160,000 6 240,000 $ 50 $ 2,000,000 The Rets normally sell for $55 each. Fixed manufacturing overhead is $360,000 per year within the range of 34,000 through 40,000 Rets per year.