Irina Inc., which began business at the start of the current year, had the following data:

Planned and actual production: 40,000 units

Sales: 37,000 units at $15 per unit

Production costs:

Variable: $4 per unit

Fixed: $260,000

Selling and administrative costs:

Variable: $1 per unit

Fixed: $32,000

The gross margin that the company would disclose on an absorption-costing income statement is:

	A.	$97,500
	B.	$147,000
	C.	$165,000
	D.	$370,000
	E.	Some other amount