[The following information applies to the questions displayed below.) Chuck Wagon Grills, Inc., makes a single product-a handmade specialty barbecue grill that it sells for $210. Data for last year's operations follow: 0 20,000 19,000 1,000 Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit Fixed costs: Fixed manufacturing overhead Fixed selling and administrative Total fixed costs 50 20 10 160 $ $ 700,000 285,000 $ 985,000 Assume that the company uses absorption costing. Prepare an income statement for last year. Chuck Wagon Grills, Inc. Absorption Costing Income Statement Sales $ 3,990,000 Ending merchandise inventory (3,040,000) Contribution margin 950,000 Selling and administrative expenses 985,000 Net operating income(loss) $ (35,000)