McCoy Corporation manufactures a computer monitor. Shown below is McCoy's cost structure:

	Variable cost per monitor		Total fixed cost for the year
Manufacturing cost	$	75.20	$	912,000
Selling and administrative	$	14.60	$	456,000

In its first year of operations, McCoy produced 100,000 monitors but only sold 95,000. McCoy's gross margin in this first year was $2,629,600. McCoy's contribution margin in this first year was $2,109,000.

Under absorption costing, what is McCoy's net operating income for its first year?

		$266,000
		$786,600
		$1,261,600
		$2,173,600

Clemeson Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price	$	145
Units in beginning inventory		0
Units produced		3,600
Units sold		3,400
Units in ending inventory		200

Variable costs per unit:
Direct materials	$	36
Direct labor	$	57
Variable manufacturing overhead	$	3
Variable selling and administrative expenses	$	5
Fixed costs:
Fixed manufacturing overhead	$	79,200
Fixed selling and administrative expense	$	64,600

The total contribution margin for the month under variable costing is:

		$70,400
		$149,600
		$166,600
		$91,800