=+PR 21-1B Classify costs obj. 1 Gaelic Industries Inc., operating at full capacity, sold 22,350 units at a price of $150 per unit during 2010. Its income statement for 2010 is as follows:

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,352,500 Cost of goods sold . . . . . . . . . . . . . . . . . . 2,200,000 __________ Gross profit . . . . . . . . . . . . . . . . . . . . . . . . $1,152,500 Expenses:

Selling expenses . . . . . . . . . . . . . . . . . . $250,000 Administrative expenses . . . . . . . . . . . . 250,000 _________ Total expenses . . . . . . . . . . . . . . . . . 500,000 __________ Income from operations . . . . . . . . . . . . . . $ 652,500 __________ __________