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 $960 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: 230 200 30 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative $110 320 30 10 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $69,000 27,000 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 192,000 152,000 40,000 29,000 $ 11,000