Cost Accounting

Start Me Up, Inc., manufacturers a caffeinated energy drink that sells for $4.10 each. The results for its first year of operations appear in the table below.

	Projections
Number of drinks produced		48,000
Number of drinks sold		50,100
Direct materials per drink	$	0.56
Direct labor per drink	$	0.26
Variable manufacturing overhead per drink	$	0.16
Total fixed manufacturing overhead	$	28,800
Total fixed selling and administrative costs	$	50,500

Required:

.	1)Compute the income for the first year under absorption costing.