Bharat Bicycle, located in India, produces an inexpensive yet rugged bicycle for use on crowded city streets. The company sells the bicycle for 760 rupees. (Indian currency is denominated in rupees, denoted by R.) Selected data for the company's operations last year follow: Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials 11,500 8,900 2,600 Direct labour R R 182 198 Variable manufacturing R 93 overhead Variable selling and R 54 administrative Fixed costs: Fixed manufacturing R793,500 overhead Fixed selling and R529,000 administrative An absorption costing income statement prepared by the company's accountant appears below: