During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $5 per unit, Direct labor, $2 per unit, Variable overhead, $4 per unit, and Fixed overhead, $324, 000. 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? $400, 000 $332, 500 $724, 000 $467, 500