Riverton Corp

Multiple Choice

Riverton Corp., which began business at the start of the current year, had the following data: Planned and actual production: 40,000 units Sales: 37,000 units at $15 per unit Production costs: Variable: $4 per unit Fixed: $260,000 Selling and administrative costs: Variable: $1 per unit Fixed: $32,000 The gross margin that the company would disclose on an absorption-costing income statement is:

A) $97,500.
B) $147,000.
C) $166,500.
D) $370,000.
E) None of the answers is correct.