4. Using the information in question 1 , the gross margin is: a. $100,000. b. $150,000. c. $262,500. d. none of the above. 5. (CPA adapted) Indiana Corporation began its operations on January 1, 2005, and produces a single product that sells for $9.00 per unit. Production is 100,000 units and 90,000 units are sold in 2005 . There is no work-in-process inventory at December 31, 2005. Manufacturing, marketing, and administrative costs for 2005 are as follows: The cost driver for manufacturing costs is units produced, and the cost driver for nonmanufacturing costs is units sold. Indiana's operating income for 2005 using variable costing is: a. $181,000. b. $271,000. c. $281,000. d. $371,000