Nicole Company produces two products: sweatshirts and hoodies. The projected income for the coming year, segmented by product line, follows:

Sweat Shirts Hoodles Total Sales S 300,000 S 2,500,000 $ 2,800,000 Less: Variable Costs 100,000 S 500,000 600,000 Contribution Margin 200,000 S 2,000,000 S 2,200,000 Less: Direct Fixed Costs S 28,000 S 28,000 S 56,000 Product Margin 172,000 1,972,000 S 2,144,000 Less: Common Fixed Costs S 100,000 OPERATING INCOME 2,044,000