A company manufactures a single product which it sells for $35 per unit. The planned output for 20X6 was 6,000 units. The unit product cost comprises:

	$
Direct Labour	8.50
Direct Material	2.50
Variable overhead
1.5 hours x $2.50/hour	3.75
Fixed overhead
1.5 hours x $8.00/hour	12.00
	26.75

What would be the budgeted profit for the year based on the marginal costing approach (assuming production is 6,000 units and closing inventory is 360 units)?

a.

$72,680

b.

$42,210

c.

$150,870

d.

$108,900