A manufacturer reports the following information below for its first three years in operation.

Year 1 Year 2 Year 3

Income under variable costing $76,000$109,000$115,000

Beginning inventory (units) 0 800 500

Ending inventory (units) 800 500 0

Fixed manufacturing overhead per unit$8.00 $8.00 $8.00

Income for year 3 using absorption costing is:

A. $109,000

B. $117,000

C. $106,600

D. $115,000

E. $111,000