Friday Night, Inc. manufactures high-quality 5-liter boxes of wine which it sells for $14 per box. Below is some information related to Friday Night's capacity and budgeted fixed manufacturing costs for 2019:

	Budgeted Fixed	Days of	Hours of
Denominator-Level	Manufacturing	Production	Production	Boxes
Capacity Concept	Overhead per Period	per Period	per Day	per Hour
Theoretical capacity	$2,500,000	362	22	300
Practical capacity	$2,500,000	310	16	250
Normal capacity	$2,500,000	310	16	175
Master budget capacity	$2,500,000	310	16	200

Production during 2019 was 990,000 boxes of wine, with 15,000 remaining in ending inventory at 12/31/19. Actual variable manufacturing costs were $1,762,200 (there are no variable cost variances). Actual fixed manufacturing overhead costs were $2,500,000. Fixed manufacturing overhead cost variances are written off to cost of goods sold in the period in which they occur. What is gross margin under master budget capacity? Hint: don't forget the production-volume variance.

	a.	$9,452,300
	b.	$9,430,250
	c.	$9,457,700
	d.	$9,444,800