During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials $5 per unit Direct labor Variable overhead Fixed overhead i $2 per unit $4 per unit $324,000 per year The company produced 36,000 units, and sold 28,500 units, leaving 7,500 units in inventory at year-end. Income calculated under variable costing is determined to be $400,000. How much income is reported under absorption costing? Multiple Choice $400,000 $467.500 $381,000 $724,000 $332,500 J