Riverton Corp., which began business at the start of the current year, had the following data:

Planned and actual production: 40,000 units

Sales: 34,000 units at $17 per unit

Production costs:

Variable: $5 per unit

Fixed: $322,000

Selling and administrative costs:

Variable: $2 per unit

Fixed: $39,200

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

Multiple Choice

• $134,300.
• $340,000.
• $86,000.
• None of the answers is correct.
• $65,300.