Robertson Company, Which Began Business at the Start of 2012

Multiple Choice

Robertson Company, which began business at the start of 2012, 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 Robertson would disclose on its 2012 absorption-costing income statement is:

A) $97,500.
B) $147,000.
C) $166,500.
D) $370,000.
E) $403,500.