During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $5 per unit, Direct labor, $3 per unit, Variable overhead, $4 per unit, and Fixed overhead, $189.000. The company produced 21,000 units, and sold 15,500 units, leaving 5.500 units in inventory at year-end. Income calculated under variable costing is determined to be $325,000. How much income is reported under absorption costing? Multiple Choice O $27500 O $275,500 o $514,000 o $220,000 o $374,500 o $275,500 o $514,000 $220,000 $325,000