During its first year of operations, Nishimoto Inc. incurred the following costs to produce 200,000 units of its only product: Direct materials $144,000

Direct labor $108,000

Variable manufacturing overhead $216,000

Fixed manufacturing overhead $432,000

N incurred the following costs in the sale of 180,000 units of product during its first year:

Variable selling and administrative $72,000

Fixed selling and administrative $252,000 Assume that direct labor is a variable cost.

If N's variable costing net operating income for this first year is $397,800, what would its absorption costing net operating income be for this first year?

• $445,800
• $473,800
• $441,000
• $354,600