Sierra Company incurs the following costs to produce and sell a single product. Variable costs per unit: Direct materials 9 10 Direct labor 5 Variable manufacturing overhead 3 Variable selling and administrative expenses Fixed costs per year 150,000 Fixed manufacturing overhead Fixed selling and administrative expenses 400,000 During the last year, 25,000 units were produced and 22,000 units were sold. The Finished Goods inventory account at the end of the year shows a balance of $72,000 for the 3,000 unsold units