ABC Corporation produces a single product that it sells for $9 per unit. During the first year of operations, 100,000 units were produced and 80,000 units were sold. Manufacturing costs and selling and administrative expenses for the year were as follows:

	Fixed Costs	Variable Costs
Raw materials	--	$1.75 per unit produced
Direct labour	--	1.25 per unit produced
Factory overhead	$100,000	0.50 per unit produced
Selling and administrative	70,000	0.60 per unit sold

What was ABC Corporation's operating income for the year using variable costing?

a.

$372,000.

b.

$271,000.

c.

$181,000.

d.

$222,000.