Assume a company reported the following information for this year Budgeted (estimated) production Budgeted sales Production capacity Selling price Estimated total manufacturing overhead cost (all fixed) Variable manufacturing cost Selling and administrative expenses (all fixed) Beginning inventories 80,000 units 00,000 units 100,000 units $25 per unit $12 per unit $700,000 $ 250,000 50 Using a predetermined overhead rate based on capacity with "unts produced as the allocation base, the company's budgeted income statement would report a gross margin that is closest to Muple Choice C $1,300,000 $400,000 $340,000 O $90.000