Whole Foods Inc. manufactures lotion that sell for $15.00 per unit. The business had no beginning inventory.

The following data summarized the operations for the period:

Units sold	6,000
Units produced	7,500
Costs:
Variable factory overhead per unit	$5.00
Fixed factory overhead - total	$27,000
Variable administrative per unit	$2.00
Fixed administrative - total	$6,000

Using absorption costing, gross margin is:

$48,000

$38,400

$20,400

$15,000