A company uses marginal costing. The following variances occurred in the last period when the actual net profit was $40,000.

Materials ................................................... $900 adverse
Labour ....................................................... $1,000 favourable
Overheads ................................................ $700 adverse
Sales price ................................................ $500 favourable
Sales volume contribution ..................... $900 favourable

What was the budgeted net profit for the last period?
(a) $38,500
(b) $39,200
(c) $41,500
(d) $40,800