3) A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

Selling Price $126

Units in beginning inventory: 0

Units produced: 3,100

Units sold: 3,000

Units in ending Inventory: 100

Variable costs per unit:

Direct materials: $22

Direct labor: $43

variable manufacturing overhead: $3

variable selling and admin: $10

Fixed costs:

fixed manufacturing overhead: $89,900 fixed selling and admin: $42,000

What is the net operating income for the month under variable costing?

$15,000

$12,100

$2,900

$5,300