Ida Sidha Karya Compan in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $920. Selected data for the company's operations last year follow: y is a family-owned company located in the village of Gianyar on the island of Bali Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit 275 260 15 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative $110 $320 $40 $15 Fixed costs Fixed manufacturing overhead Fixed selling and administrative 77,000 $33,000 The absorption costing income statement prepared by the company's accountant for last year appears below Sales Cost of goods sold $ 239,200 195,000 Gross margin Selling and administrative expense 44,200 36,900 Net operating income $ 7,300