Zahra's Decorative produces and sells a decorative pillow for $97.50 per unit. In the first month of operation, 2,000 units were produced, and 1,750 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes:

Variable manufacturing costs (DM, DL, Var Overhead)	$22.10 per unit
Variable marketing costs (Commission, shipping, supplies)	$ 3.90 per unit
Fixed manufacturing costs	$13.00 per unit
Administrative expenses, all fixed	$19.50 per unit
Ending inventories:
RM Inventory	-0-
WIP Inventory	-0-
Finished goods Inventory	250 units

Compute the operating income using absorption costing.