Indiana Corporation produces a single product that it sells for $9 per unit. Inventory at the beginning of the year was 10,000 units with a cost of $52,000. During the year, 100,000 units were produced and 80,000 units were sold. Manufacturing costs and selling and administrative expenses for the year were as follows: Fixed Costs Variable Costs Raw materials -- $1.85 per unit produced Direct labour -- 1.25 per unit produced Factory overhead $100,000 0.60 per unit produced Selling and administrative 70,000 0.70 per unit sold What was Indiana Corporation's operating income for the year using absorption costing? Multiple Choice $376,000 $381,000 $278,500 $398,500