During its first year of operations, the McCormick Company incurred the following manufacturing costs:

The company produced $25,000$ units, and sold $17,500$ units, leaving $7,500$ units in inventory at year$-$end. Income calculated under variable costing is

determined to be $$345,000.$ How much income is reported under absorption costing?

Multiple Choice

$$345,000$

$$285,000$

$$545,000$

$$405,000$