Springer 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 37,000 units at $40 each.

Costs incurred were: Fixed manufacturing overhead $275,000

Fixed selling and administrative cost 160,000

Variable manufacturing cost per unit 16

Variable selling and administrative cost per unit 6

If there were no variances, the company's absorption-costing income would be:

$666,000.

$262,125.

$176,625.

None of these.

$251,625.