Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on the island of Bali in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $910. Selected data for the company's operations last year follow: Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit 0 300 265 35 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative S 115 S 325 S 45 20 Fixed costs Fixed manufacturing overhead Fixed selling and administrative 72,000 $ 34,000 The absorption costing income statement prepared by the company's accountant for last year appears below: Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income $241,150 192,125 49,025 39,300 9,725