Summarized data for 2016 (the first year of operations) for Gorman Products, Inc., are as follows:

Sales (75,000 units)	$3,000,000
Production costs (80,000 units)
Direct material	880,000
Direct labor	720,000
Manufacturing overhead:
Variable	544,000
Fixed	320,000
Operating expenses:
Variable	168,000
Fixed	240,000
Depreciation on equipment	60,000
Real estate taxes	18,000
Personal property taxes (inventory & equipment)	28,800
Personnel department expenses	30,000