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 $850. Selected data for the company's operations last year follow Units in beginning inventory Units produced Units solo Units in ending inventory Variable costs per unit: 0 250 225 25 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative $ 100 $ 320 $40 $20 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative 60,000 $20,000 The absorption costing income statement prepared by the company's accountant for last year appears below: Sales Cost of goods sold $191,250 157,500 Gross margin Selling and administrative expense 33,750 24,500 Net operating income $ 9,250