Calloway Corp., which began business at the start of the current year, had the following data: Planned and actual production 40,000 units Sales 38,000 units at $15 per unit Variable production costs (DM, DL, VMO/H) $5 per unit Fixed production (manufacturing) overhead $260,000 Variable selling & administrative costs $1 per unit Fixed selling & administrative costs $32,000 The gross margin that the company would disclose on an absorption costing income statement is