Arca Company reports the following for its product for its first year of operations, Direct materials $ 90 per unit Direct labor $ 70 per unit Variable overhead $ 40 per unit Fixed overhead $ 104,000 per year Variable selling and administrative expenses $6 per unit Fixed selling and administrative expenses $ 60,000 per year The company seilis its product for $400 per unit Compute gross profit using absorption costing assuming the company produces 2,600 units and sells 2.200 units Multiple Choice $338,800 $368,000 000 9 $292,000 $308,000