Ace Company is a manufacturer of basketballs and began operations this year. The company produced $3,300$ units and sold $2,750$ units. Each basketball was sold at a price of $$48.$ Fixed overhead costs are $$42,000$ per year, and fixed selling and administrative costs are $$35,600$ per year. The company also reports the following per unit variable costs for the year.

$\backslash$table$[[$Direct materials,$$7\mathrm{.}00$ per unit$],[$Direct labor,$$5\mathrm{.}00$ per unit$],[$Variable overhead,$$4\mathrm{.}00$ per unit$],[$Variable selling and administrative expenses,$$3\mathrm{.}00$ per unit$]]$

Compute income under variable costing.

Multiple Choice

$$77,600$

Sili

$$ $$121,325$

$$ $$79,750$

$$ $$2,150$