The following data relates to a year’s budgeted activity for the Collins Corporation, a single product company: mki4

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Units Beginning inventory. 50,000 Production. 100,000 Available 150,000 Sales 110,000 Ending inventory 40,000 Selling price Variable manufacturing costs Variable selling costs Fixed manufacturing costs (based on 100,000 units) Fixed selling costs (based on 100,000 units) Per unit $5.00 1.00 2.00 25 .65 Total fixed costs remain unchanged within the relevant range of 25,000 units to total capacity of 160.000 units. Required: Projected net income for the Collins Corporation for the year under the direct (variable) costing approach. (AICPA Adapted.)