Ida Sidha Karya Company is a family-owned company located in the village of Glanyar 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 $900. 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: 0 300 275 25 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative $ 125 $ 345 $45 $35 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $63,000 $25,000 The absorption costing income statement prepared by the company's accountant for last year appears below: Sales Cost of goods sold $ 247,500 199,375 Gross margin Selling and administrative expense 48,125 34,625 Net operating income $ 13,500