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 $840. 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: 300 275 25 Direct materials Direct labor Variable manufacturing overhead $100 $310 $30 Variable selling and administrative $35 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $66,000 $31,000 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 $231,000e 181,500 49,500 40,625 $ 8,875