Duif Company's absorption costing income statement for the last year of operations is presented below. Sales..........................................................................................$70,000 Less cost of goods sold: Beginning inventory.............................................. 0 Add cost of goods manufactured..................48,000 Goods available for sale...................................48,000 Less ending inventory.......................................6,000 Cost of goods sold....................................................................42,000 Gross margin...............................................................................28,000 Less selling and admin. expenses........................................... 25,000 Net operating income................................................................$3,000 Data on units produced and sold for the year are given below. Units in beginning inventory...................................0 Units produced....................................................8,000 Units sold.............................................................7,000 Variable manufacturing costs are $4 per unit. Fixed manufacturing overhead totaled $16,000 for the year. The fixed manufacturing overhead was applied to products at a rate of $2 per unit. Variable selling and administrative expenses were $3 per unit sold.