Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year appears below Whitman Company Income Statement 1,828,600 902,000 926,600 Sales (41,000 units $44.60 per unit) $ Cost of goods sold (41,000 units x $22 per unit) Gross margin Selling and administrative expenses 512,500 Net operating income $414,100 The company's selling and administrative expenses consist of $307,500 per year in fixed expenses and $5 per unit sold in variable expenses. The $22 per unit product cost given above is computed as follows: Direct materials Direct labor Variable manufacturing overhead $10