Start Me Up, Inc., manufacturers a caffeinated energy drink that sells for $4 each. The results for its first year of operations appear in the table below.

Required:

1. Compute the income for the first year under absorption costing.

Number of drinks produced Number of drinks sold Direct materials per drink Direct labor per drink Variable manufacturing overhead per drink Total fixed manufacturing overhead Total fixed selling and administrative costs Projections 52,000 50,000 0.55 0.25 0.15 $39,000 $50,000