Advanced Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year.

Units produced this year	25,000 units
Units sold this year	15,000 units
Direct materials	$9 per unit
Direct labor	$11 per unit
Variable overhead	$75,000 in total
Fixed overhead	$137,500 in total

Given Advanced Company's data, and the knowledge that the product is sold for $50 per unit and operating expenses are $200,000, compute the net income under variable costing.

A. $55,000

B. $67,500

C. $80,500

D. $122,500

E. $205,000