The Heartlake Corporation manufactures and sells toy gyroscopes. The following data is related to sales and production of the toy gyroscopes for last year.

Selling price per unit	$8.20
Variable manufacturing costs per unit	$1.84
Variable selling and administrative expenses per unit	$4.95
Fixed manufacturing overhead (in total)	$80,000
Fixed selling and administrative expenses (in total)	$84,000
Units produced during the year	510,000
Units sold during year	170,000

Using absorption costing, what is gross profit for last month? (Round any intermediary calculations to the nearest cent.)

$340,000

$1,394,000

$1,734,000

$1,054,000

Hyper Color Company manufactures widgets. The following data is related to sales and production of the widgets for last year.

Selling price per unit	$150
Variable manufacturing costs per unit	$63
Variable selling and administrative expenses per unit	$8
Fixed manufacturing overhead (in total)	$34,000
Fixed selling and administrative expenses (in total)	$9000
Units produced during the year	1700
Units sold during year	1000

Using absorption costing, what is operating income for last year? (Round any intermediary calculations to the nearest whole dollar.)

		$216,000
		$150,000
		$50,000
		$232,000