The following income statements are provided for Li Company's last two years of operation:

	Year 1				Year 2
Number of units produced and sold		4,300				3,800
Sales revenue	$	63,840			$	57,760
Cost of goods sold		43,640				39,540
Gross margin		20,200				18,220
General, selling, and administrative expenses		13,780				12,820
Net income	$	6,420			$	5,400

Assuming that cost behavior did not change over the two-year period, what is the annual amount of the company's fixed manufacturing overhead?

Multiple Choice