Assume the following information for a company that produced 10,000 units during its first year of operations and sold 8,000 units:

	Per Unit	Per Year
Direct materials	$ 75
Direct labor	$ 50
Variable manufacturing overhead	$ 10
Fixed manufacturing overhead		$ 300,000

If the companys absorption costing net operating income during its first year of operations was $80,000, what was its variable costing net operating income during its first year of operations?

Multiple Choice

• $40,000

• $140,000

• $20,000

• $120,000