During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $4 per unit, Direct labor, $2 per unit, Variable overhead, $3 per unit, and Fixed overhead, $160,000. The company produced 20,000 units, and sold 15,000 units, leaving 5,000 units in Inventory at year-end. Income calculated under variable costing is determined to be $320,000. How much income is reported under absorption costing? Multiple Choice O $360,000 0 O $480,000 0 O $320,000 0 $280,000