Fresh Air Products manufactures and sells a variety of camping products. Recently the company opened a new plant to manufacture a deluxe portable cooking unit.

Cost and sales data for the first month of operations are shown below:

Beginning inventory0 units

Units produced10,500

Units sold8,700

Manufacturing costs

Fixed overhead$84,000

Variable overhead$3 per unit

Direct labour$12 per unit

Direct material$30 per unit

Selling and administrative costs

Fixed$197,800

Variable$3 per unit sold

The portable cooking unit sells for $110. Management is interested in the opening month's results and has asked for an income statement.

Assuming the company uses absorption costing, Calculate the Operating Income before taxes.