Smithfield Industries' master budget was based on a level of activity of producing and selling 50,000 workout benches with a retail price of \$150 per unit. The company has the capacity to produce 60,000 units. Variable labor costs were budgeted to be \$1,875,000. Variable material costs were budgeted to be \$1,200,000 and variable overhead costs were budgeted to be \$1,950,000. Annual fixed costs are budgeted to be \$1,400,000. The company actual sold 57,000 workout benches.
What should the flexible budget fixed costs be under the new activity level?