ProTech began business at the start of the current year. The company planned to produce 40,000 units, and actual production conformed to expectations. Sales totaled 36,000 units at $40 each. Costs incurred were:

Variable manufacturing overhead per unit$18

Fixed manufacturing overhead297,000

Variable selling and administrative cost per unit5

Fixed selling and administrative cost per unit188,000

If there werenovariances, the company's absorption-costing income would be:

Multiple Choice

• $81,700.
• $156,700.
• $167,200.
• $612,000.
• None of the answers is correct.