The Jarvis Company Manufactures and markets two products. The following information pertains to the financial year 2014:

Product A Product B Production rate 10 units per machine hour 5 units per machine hour Number of units produced 400,000 75,000 Number of units sold 375,000 60,000 Variable manufacturing costs per unit $3 $5 Variable selling costs per unit $1 $2 Sales price per unit $5 $11