E Menu Variable and Absorption Costing Summarized data for 2016 (the first year of operations) for Gorman Products, Inc., are as follows: Sales (75,000 units) Production costs (80,000 units) $7,500,000 Fir Direct material 2,200,000 Direct labor 1,800,000 Manufacturing overhead Variable 1,360,000 Fixed 800,000 Operating expenses: Fixed Depreciation on equipment Real estate taxes Personal property taxes inventory & equipment Personnel department expenses 420,000 600,000 150,000 45,000 72,000 75,000 a. Prepare an income statement based on full absorption costing Only use a negative sign with your answer for net income(loss), if the answer represents a net loss. Otherwise, do not use negative signs with any answers. Round answers to the nearest whole number, when applicable. Abserption Costing Income Statement Sales Cost of Goods Sold