Favaz began business at the start of this year and had the following costs: variable manufacturing cost per unit, $7; fixed manufacturing costs, $64,000; variable selling and administrative costs per unit, $2; and fixed selling and administrative costs, $254,000. The company sells its units for $47 each. Additional data follow.

Planned production in units 10,000 Actual production in units 10,000 Number of units sold 9,000

There were no variances.

The income (loss) under absorption costing is: