Answer:
Appliance Apps
Income statement under the absorption method.
Sales                                                                                     $2,880,000
Less Cost of Sales 
Beginning Inventory                                                0
Add Cost of Goods Manufactured                  $1,927,500
Less Ending Inventory                                      ($385,500) ($1,542,000)
Gross Profit                                                                            $1,338,800
Less Expenses
Variable Sales and Administration Expenses  $100,000
Fixed Sales and Administration Expenses       $975,000  ($1,075,000)
Net Income                                                                              $263,000
Explanation:
Units in Ending Inventory
Beginning Inventory             0
Add Units Produced       25,000
Available for Sale           25,000
Less Units Sold               20,000
Ending Inventory              5,000
Absorption Cost calculations
Product Cost = $77.10
Cost of Goods Manufactured = $1,927,500
Ending Inventory = $385,500