(A) Morey Company has just completed its first year of operations. The company's absorption costing income statement for the year appears below: Morey Company Income Statement Sales (40,000 units Cost of goods sold: $33.75).. $1,350,000 Add cost of goods manufactured (50,000 units @$21).... 1050,000 1,050,000 210.000 840.000 510,000 420,000 S-90.000 bie s cangme tventory do.oo u) 21) Gross Margn... Selling and administrative expenses Net operating income..