Gonzalez Company Has No Beginning and Ending Inventories,and Reports the Following

Multiple Choice

Gonzalez Company has no beginning and ending inventories,and reports the following data about its only product:
$$\begin{array} { l l } \text { Direct materials used } & \$ 300,000 \\\text { Direct labor } & \$ 80,000 \\\text { Fixed indirect manufacturing } & \$ 100,000 \\\text { Fixed selling and administrative } & \$ 190,000 \\\text { Variable indirect manufacturing } & \$ 20,000 \\\text { Variable selling and administrative } & \$ 90,000 \\\text { Selling price(per unit) } & \$ 50\end{array}$$
$\begin{array} { l } \text {Units produced and sold }&10,000 \\\end{array}$

Gonzalez Company uses the absorption approach to prepare the income statement.What is the gross margin?

A) $0
B) $20,000
C) $100,000
D) $120,000