A manufacturer makes 20,000 pairs of shoes per year at a price of $10.00 per pair. The price of each pair is stable. It costs the company $3.00 to make each pair, and costs increase by 5% each year. This is the first year the company is in business. Fixed costs for operations are $10,000. A $90,000 asset acquired in the first year of production is straight-line depreciated with a useful life of 3 years, and no salvage value. The company faces a 10% tax rate in its first year of production. How much does the company forecast net income will be at the end of its first year of operation? a. $34,000 O b. $40,000 O c. $78,000 d. $90,000