Waterloo Storage Products makes a four-drawer plastic storage cabinet on casters meant for use in garages and workshops. Each cabinet sells for $52. Data for last year's operations follow:

Units in beginning inventory 0 Units produced 23,200 Units sold 20,600 Units in ending inventory 2,600 Variable costs per unit: Direct materials $ 12 Direct labour 14 Variable manufacturing overhead 6 Variable selling and administrative 8 Total variable cost per unit 40 Fixed costs: Fixed manufacturing overhead $ 79,500 Fixed selling and administrative 114,500 Total fixed costs $194,000