Hercule Company began operations in 2 026. The following information was taken from Hercule's accounting r ecords for 2026 and 2027: 2026 Units produced I 2027 25,000 Direct materials cost per unit $11 Direct labor cost per unit $15 Variable overhead cost per unit $7 $11 Variable selling & admin cost per uni t ... $4 $5 Fixed overhead (total cost) $126,000 I III 000 31,000 Selling price per unit $65 18,000 I 5,000 Fixed selling & admin (total cost) $ 22,400 $ 34,100 Units sold $65 $19 IIIII $14 $15 7, Calculate Hercule Company's 2027 net income using variable costing. Assume Hercule Company employs a FIFO inventory cost flow assumption.

Hercule Company began operations in 2 026. The following information was taken from Hercule's accounting r ecords for 2026 and 2027: 2026 2027 Units produced 18,000 25,000 Direct materials cost per unit $11 $19 Direct labor cost per unit $15 $14 Variable overhead cost per unit $11 Variable selling & admin cost per uni t.. \$4 \$5 Fixed overhead (total cost) 5,000 $126,000 $15 Fixed selling & admin (total cost) Units sold $22,400 $34,100 000 31,000 Selling price per unit $65 $65 Calculate Hercule Company's 2027 net income using variable costing. Assume Hercule Company employs a FIFo inventory cost flow assumption