Wello Carts determined its operating income for July using variable costing as $28,400. On July 1, it had 1,100 carts on hand. Unit costs incurred in production are stable at $2.50 for direct materials, $1.20 for direct labor, $1.40 for variable manufacturing overhead, and $0.80 for variable S&A costs. The company has annual fixed S&A costs of $11,750 and fixed annual manufacturing overhead costs totaling $31,557. Wello produced 9,420 and sold 9,560 carts during July. What is the amount of absorption costing operating income? Do not round interim calculations. $27,938 $27,931 $25,184 $28,869