Happy Trails has the following information for its manufacturing: Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Units Produced Units Sold $14 $4 $24 28,000 19,000 Its income statement under absorption costing is: Sales $16 Beginning Inventory Cost of Goods Manufactured Cost of Goods Available for Sale - Ending Inventory Cost of Goods Sold Gross Profit -Sales and Admin. Expenses: Variable Fixed Total Sales and Admin. Expenses Net Operating Income $1,900,000 $0 1,624,000 $1,624,000 522,000 $1,102,000 $798,000 $114,000 200,000 $314,000 $484,000 Sales Happy Trails Variable Costing Income Statement Beginning Inventory Cost of Goods Manufactured Cost of Goods Available for Sale Ending Inventory Cost of Goods Sold Gross Profit Variable Sales and Administrative Expenses Contribution Margin Fixed Sales and Administrative Expenses Fixed Manufacturing Overhead Total Sales and Administrative Expenses Net Operating Income Reconciliation: Net Operating Income: Variable Fixed Manufacturing Overhead Deferred in Inventory Net Operating Income: Absorption I tA tA AS