Happy Trails has the following information for its manufacturing: Direct Materials $14 Direct Labor $14 Variable Manufacturing Overhead $2 Fixed Manufacturing Overhead $25 Units Produced 28,000 Units Sold 18,000 Its income statement under absorption costing is: Sales $1,900,000 Beginning Inventory $0 Cost of Goods Manufactured 1,540,000 Cost of Goods Available for Sale $1,540,000 - Ending Inventory 550,000 Cost of Goods Sold $990,000 Gross Profit $910,000 -Sales and Admin. Expenses: Variable $108,000 Fixed 300,000 Total Sales and Admin. Expenses $408,000 Net Operating Income $502,000