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

	Year 1				Year 2
Number of units produced and sold		4,000				3,500
Sales revenue	$	60,000			$	52,500
Cost of goods sold		39,200				35,200
Gross margin		20,800				17,300
General, selling, and administrative expenses		11,500				10,500
Net income	$	9,300			$	6,800

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

• $7,200

• $14,400

• $16,400

• None of these