For the Month Ended October 31, 2016 32,000,000.00 28,330,000.00 3,670,000.00 4,270,000.00 $(600,000.00) 1Sales (400,000 units) Cost of goods sold 3 Gross profit 4 Selling and administrative expenses 5 Operating loss The production costs and selling and administrative expenses, based on production of 400,000 units in October, are as follows: Direct materials Direct labor Variable manufacturing cost Variable selling and administrative expenses Fixed manufacturing cost Fixed selling and administrative expenses $15 per unit 17 per unit 35 per unit 10 per unit $1,530,000 for October 270,000 for October