Laurens Incorporated began operations this year. The company manufactured 22,000 units of its product and sold 20,000 units. Each unit sold for $100. The cost to produce these units were as follows:

Manufacturing costs:

Variable…………………………………… $1,100,000 ($50 per unit)

Fixed………………………………………. 330,000 ($15 allocated to each unit)

Selling and administrative expenses:

Variable…………………………………… 40,000 ($2 per unit)

Fixed………………………………………. 250,000