Dake corporation's relevant range of activity is 4,100 units to 9,500 units. when it produces and sells 6,800 units, its average costs per unit are as follows:
average cost per unit
direct materials $ 6.70
direct labor $ 3.80
variable manufacturing overhead $ 1.45
fixed manufacturing overhead $ 2.50
fixed selling expense $ 1.05
fixed administrative expense $ 0.75
sales commissions $ 0.85
variable administrative expense $ 0.75
for financial reporting purposes, the total amount of product costs incurred to make 6,800 units is closest to: