Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 38,000 Rets per year. Costs associated with this level of production and sales are given below: Unit $ 15 10 Total Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense Total cost $570,000 380,000 114,000 266,000 152,000 228,000 1,710,000 6 $ 45 The Rets normally sell for $50 each. Fixed manufacturing overhead is $266,000 per year within the range of 31,000 through 38,000 Rets per year