Context : ABC Ltd., a maker of light switches, has experienced a steady growth in sales for the past three years. The company's management accountant has prepared the following data for the current year, 2021:

Variable cost: Direct labour Direct materials Variable overhead Total variable costs 12 per light switch 5 per light switch 3 per light switch 20 per light switch Fixed costs: Manufacturing 50,000 Selling 30,000 Administrative 80,000 Total fixed costs 160,000 Selling price 30 per light switch Expected sales, 2021 (30,000 light switches) 900,000 Tax rate: 10%