Sprinkle Co. sells its product for $80 per unit. During 2017, it produced 60,000 units and sold 50,000 units (there was no beginning inventory). Costs per unit are: direct materials $20, direct labor $12, variable overhead $4, and selling/administrative expenses $2. Fixed costs are: $960,000 manufacturing overhead, and $120,000 selling and administrative expenses. The net income under absorption costing is $1,540,000 $1,180,000 $1,160,000 $1,020,000