Income statements under absorption and variable costing. In the coming year, Kalling Company expects to sell 28,700 units at $32 each. Kalling's controller provided the following information for the coming year: Units Production: 30,000; Unit Direct Materials: $9.95; Unit Direct Labor: $2.75; Unit Variable Overhead: $1.65; Unit Fixed Overhead*: $2.50; Unit Selling Expense (Variable): $2.00; Total Fixed Selling Expense: $65,500; Total Fixed Administrative Expense: $231,000. * The unit fixed overhead is based on 30,000 units produced.
What is the total fixed cost for the coming year?
a. $296,500
b. $231,000
c. $65,500
d. $2,500