Delta Company planned and actually manufactured 200,000 units of its single product in 2021, its first year of operation. Variable manufacturing cost was $20 per unit produced. Variable operating (nonmanufacturing) cost was $10 per unit sold. Planned and actual fixed manufacturing costs were $600,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $400,000. Delta sold 120,000 units of product at $40 per unit.

i.Delta's 2021 operating income using absorption costing is _________.

a. $440,000

b.$200,000

c. $600,000

d. $840,000