Wilderness Products, Inc., has designed a self-inflating sleeping pad for use by backpackers and campers. The following information is available about the new product:

a.	An investment of $1,350,000 will be necessary to carry inventories and accounts receivable and to purchase some new equipment needed in the manufacturing process. The company's required rate of return is 21% on all investments.

b.	A standard cost card has been prepared for the sleeping pad, as shown below:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost
Direct materials	5.0 yards	4.20 per yard	$21.00
Direct labor	4.3 hours	$9.4 per hour	40.42
Manufacturing overhead (15 variable)	4.30 hours	$12.90 per hour	55.47
Total standard cost per pad			$116.89

c.	The only variable selling and administrative expense will be a sales commission of $7 per pad. Fixed selling and administrative expenses will be (per year):

Salaries	$68,000
Warehouse rent	41,000
Advertising and other	2,216,726
Total	$2,325,726

d.	Because the company manufactures many products, no more than 77,400 direct labor-hours per year can be devoted to production of the new sleeping pads.

e.	Manufacturing overhead costs are allocated to products on the basis of direct labor-hours.

Calculate sales and cost of goods sold.