On January 1, 2016 Oxford Company had 3,500 units in inventory at a cost of $9 per unit. During 2016 Oxford company purchased 3,000 units (Lot #1 - the first units purchased during the year) at a cost of $9.50 per unit, 4,000 units (Lot #2) at a cost of $10.50 per unit and 2,500 units (Lot #3) at a cost of $10 per unit. The company sold 8,700 units during 2016 at a sales price of $12.25 per unit. If Oxford Company uses a periodic inventory system and the first-in-first-out (FIFO) method, then what is the company's gross profit for 2016?

	a.	$23,475
	b.	$21,075
	c.	$18,675
	d.	$17,175