An entity produces a single product that it sells for $8 per unit. During the first year of operations, 100,000 units were produced and 80000 units were sold. Manufacturing costs and selling and administrative expenses for the year were as follows:

Fixed Costs

Variable Costs

Direct materials

-

$2.00 per unit

Direct labour

-

1.28per unit

Manufacturing overhead

$95571

0.31per unit

Selling costs

71742

0.61per unit

What was the operating income for the year using variable costing?

Select one:

a.$ 155801

b.$ 170150

c.$ 136687

d.$ 185487