ScholarPak Company produced and sold 76,000 backpacks during the year just ended at an average price of $36.00 per unit. Variable manufacturing costs were $15.00 per unit, and variable marketing costs were $7.20 per unit sold. Fixed costs amounted to $546,000 for manufacturing and $220,800 for marketing. There was no year-end work-in-process inventory. (Ignore income taxes.)

1. If ScholarPak