JT Pickleball, a manufacturer of playing sets for pickleball (a game for the elderly at heart), is trying to decide among capacity bases to use in the companys absorption costing system. Theoretical capacity is 100,000 units, practical capacity is 80,000 units, normal capacity is 75,000 units, and budgeted capacity is 70,000 units. Assume there is no beginning inventory, and assume the following information about JT Pickleball:

Budgeted Fixed Costs	$ 800,000
Variable Cost per unit	$ 15.00
Sales Price	$ 40.00
Units Produced	75,000
Units Sold	70,000

a. What is the total allocated fixed cost under normal capacity?

b. What is the cost in ending inventory under practical capacity?

c. What is the gross margin under theoretical capacity?

When answering, use a $ and comma separators (e.g., "$100,000").