Pennsylvania Company Provided the Following Information Regarding Its Only Product--Skateboards

Multiple Choice

Pennsylvania Company provided the following information regarding its only product--skateboards. $$\begin{array} { l r } \text { Direct materials used } & \$ 200,000 \\\text { Direct labor } & 80,000 \\\text { Fixed overhead } & 100,000 \\\text { Fixed selling and administrative costs } & 190,000 \\\text { Variable overhead } & 20,000 \\\text { Variable selling and administrative } & 90,000 \\\text { Selling unit price } & 70 \\\\\text { Units produced and sold } &10,000 \\\end{array}$$ _____ is the gross margin if the absorption approach is used.

A) $300,000
B) $390,000
C) $470,000
D) $450,000