Penn Company has the following data about its only product: 3 Direct materials used $200,000 6 Direct labor 80,000 Indirect manufacturing-fixed 100,000 Selling and administrative-fixed 190,000 Indirect manufacturing-variable 20,000 Selling and administrative-variable 90,000 Selling price(per unit) 70 12 Units produced and sold 10,000 15 Penn Company uses the absorption approach. What is the gross margin? 18 $450,000 $300,000 21 $390,000 $470,000