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

Multiple Choice

Winter Company has no beginning and ending inventories,and reports the following data about its only product:
$\begin{array}{ll}\text { Direct materials used } & \$ 200,000 \\\text { Direct labor } & \$ 80,000 \\\text { Fixed indirect manufacturing } & \$ 100,000 \\\text { Fixed selling and administrative } & \$ 300,000\\\text { Variable indirect manufacturing } & \$ 20,000 \\\text { Variable selling and administrative } & \$ 60,000 \\\text { Selling price(per unit) } & \$ 150\end{array}$
$\begin{array} { l } \text {Units produced and sold }&10,000 \\\end{array}$

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

A) $740,000
B) $1,040,000
C) $1,100,000
D) $1,160,000