Last year, Walsh Company manufactured 25,000 units and sold 22,000 units. Production costs were as follows: Direct materials $100,000 Direct labour 75,000 Variable manufacturing overhead 50,000 Fixed manufacturing overhead 75,000 Total sales were $440,000, total variable selling and administrative expenses were $110,000, and total fixed selling and administrative expenses were $45,000. There was no beginning inventory. Assume that direct labour is a variable cost.

What was the operating income under ABSORPTION COSTING? Multiple Choice $21,000 $12,000 $9,000 $2,000