Please, see image. E9-26 (similar to)Question HelpAtlanta, Inc., planned and actually manufactured 170,000 units of its single product in 2017, its first year of operation. Variable manufacturing cost was $17 per unit produced. Variable operating (nonmanufacturing) cost was $15 per unit sold. Planned and actual fixedmanufacturing costs were $510,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $400,000. Atlanta sold 100,000 units of product at $46 per unit.Read the requirements.Requirement 1. Atlanta's 2017 operating income using absorption costing is (a) $700,000, (b) $490,000, (c) $890,000, (d) $1,100,000, or (e) none of these. Show supporting calculations.Begin by selecting the labels used in the absorption costing calculation of operating income and enter the supporting amounts. Perform the calculations in this step, but select the correct operating income in the next step. (For amounts with a $0 balance, make sure to e"0" in the appropriate cell.)Absorption costingRevenues4600000Cost of goods sold:RequirementsBeginning inventoryVariable manufacturing costs2890000Allocated fixed manufacturing costs5100001. Atlanta's 2017 operating income using absorption costing is (a) S700,000, (b)$490,000, (c) $890,000, (d) S1,100,000, or (e) none of these. Show supportingcalculations.2. Atlanta's 2017 operating income using variable costing is (a) $1,000,000, (b)$700,000, (c) $490,000, (d) $890,000, or (e) none of these. Show supportingCost of goods available for sale3400000Deduct ending inventoryCost of goods soldcalculations.Gross marginVariable operating costs1400000PrintDoneFixed operating costs400000Operating incomeChoose from any list or enter any number in the input fields and then click Check Answer.

With absorption costing, gross profit is derived by subtracting cost of goods sold from sales. Cost…

Requirements 1. Atlanta's 2017 operating income using absorption costing is (a) S700,000, (b) $490,000, (C) S890,000, (d) $1,100,000, or (e) none of these. Show supporting calculations. 2. Atlanta's 2017 operating income using variable costing is (a) $1,000,000, (b) S700,000, (C) $490,000, (d) S890,000, or (e) none of these. Show supporting calculations.