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