The Garvis Company uses anabsorption-costing system based on standard costs. Variable manufacturing cost consists of direct material cost of $4.50 per unit and other variable manufacturing costs of $1.50 per unit. The standard production rate is 20 units permachine-hour. Total budgeted and actual fixed manufacturing overhead costs are $840,000. Fixed manufacturing overhead is allocated at $14 permachine-hour based on fixed manufacturing costs of $840,000 / 60,000 machine-hours, which is the level Garvis uses as its denominator level. The selling price is $10 per unit. Variable operating(non-manufacturing) cost, which is driven by unitssold, is $2 per unit. Fixed operating(non-manufacturing) costs are $240,000. Beginning inventory in 2017 is 60,000 units; ending inventory is 80,000 units. Sales in 2017 are 1,080,000 units. The same standard unit costs persisted throughout 2016 and 2017. Forsimplicity, assume that there are noprice, spending, or efficiency variances.