TB MC Qu. 06-105 (Static) Arca Company reports the following...

Arca Company reports the following for its product for its first year of operations.

Direct materials	$ 70	per unit
Direct labor	$ 50	per unit
Variable overhead	$ 20	per unit
Fixed overhead	$ 96,000	per year
Variable selling and administrative expenses	$ 6	per unit
Fixed selling and administrative expenses	$ 40,000	per year

The company sells its product for $300 per unit. Compute gross profit using absorption costing assuming the company produces 2,400 units and sells 2,000 units.