Northern, Inc. just finished its second year of operations. In the first year it produced 1,000 units and sold 400. The second year resulted in the same production level but sales were 1,200 units. The direct (variable) costing income statements for both years are shown below. YEAR 1 YEAR 2 Sales $ 60,000 $180,000 $78,000 26,800 2,400 80,400 Variable cost of goods sold $26,000 Variable selling and admin 800 Contribution margin Fixed manufacturing 40,000 overhead 33,200 99,600 40,000 55,000 $ 44,600 Fixed selling and 15,000 55,000 15,000 administration Operating income $(21,800) Total production costs for Northern during year 1 were: $65,000 $66,000 $81,800 $105,000