The following static budget is provided:

Per Unit Total Sales $ 80 $1, 040, 000 Less variable costs: Manufacturing costs 40 520, 000 Selling and administrative costs 20 260, 000 Contribution margin $ 20 $ 260,000 Less fixed costs: Manufacturing costs 82, 600 Selling and administrative costs 132, 000 Total fixed costs 214,000 Net income 46, 000