Naomi company manufactures and sells one product. The following information pertains to each of the companys first two years of operations, using super-variable costing. Variable cost per unit: Direct materials $10 Fixed costs per year: Direct labor $113,400 Fixed manufacturing overhead $94,500 Fixed selling and administrative expenses $278,000 The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. The selling price of the companys product is $150 per unit. Year 1 Year 2 Production (units) 6,300 6,300 Sale (units) 5,900 6,700 For external reporting purpose, the company has to use GAAP-consistent absorption accounting. Q.: The absorption costing income for Year 1 is: