Carpenter Corporation produces a single product that sells for $7.00 per unit. Standard capacity is 100,000 units per year; 100,000 units were produced and 80,000 units were sold during the year. Manufacturing costs and selling and administrative expenses are presented below.

There were no variances from the standard variable costs. Any under- or overapplied overhead is written off directly at year-end as an adjustment to cost of goods sold.

Fixed costsVariable costsDirect material$0$1.50 per unit producedDirect labor01.00 per unit producedManufacturing overhead$150,0000.50 per unit producedSelling & Administration expense80,0000.50 per unit sold

Refer to Carpenter Corporation. What is the net income under variable costing?

Select one:

a. $50,000

b. $80,000

c. $90,000

d. $120,000