Assume the following information for a company that produced and sold 10,000 units during its first year of operations:

Per UnitPer YearSelling price$ 200 Direct materials$ 85 Direct labor$ 50 Variable manufacturing overhead$ 8 Sales commission$ 8 Fixed manufacturing overhead $ 300,000

Using absorption costing, what is the companys net operating income?

Multiple Choice

$190,000

$490,000

$270,000

$170,000