The following costs result from the production and sale of 4,800 drum sets manufactured by Tight Drums Company for the year ended December 31, 2015. The drum sets sell for $330 each. The company has a 25% income tax rate.

Variable production costs
Plastic for casing	$	158,400
Wages of assembly workers		470,400
Drum stands		201,600
Variable selling costs
Sales commissions		148,800
Fixed manufacturing costs
Taxes on factory		7,000
Factory maintenance		14,000
Factory machinery depreciation		74,000
Fixed selling and administrative costs
Lease of equipment for sales staff		14,000
Accounting staff salaries		64,000
Administrative management salaries		144,000