Waterway Centre Inc. sells Frisbees. In 2022, the company produced 3,000,000 units but sold only 2,520,000 units. The unit selling price was $1.50 per Frisbee. The company had no beginning inventory. Costs and expenses for the year ended December 31, 2022 were as follows: Variable costs per unit: Direct materials Direct labour $0.47 0.09 Variable manufacturing overhead 0.20 Variable selling and administrative expenses 0.22 Annual fixed costs and expenses: Manufacturing overhead $360,000 Selling and administrative expenses 344,000