Dessa, Inc. reports the following information for the year ended December 31:

Beginning Finished Goods Inventory	50		units
Units produced	450		units
Units sold	500		units
Sales price	$140		per unit
Direct materials	$25		per unit
Direct labor	$10		per unit
Variable manufacturing overhead	$16		per unit
Fixed manufacturing overhead	$15,800		per year
Variable selling and administrative costs	$8		per unit
Fixed selling and administrative costs	$14,000		per year

The beginning Finished Goods Inventory costs were $3,300 under absorption costing and $2,550 under variable costing. What is the operating income using variable costing?

A.$3,700

B.$40,200

C.$40,500

D.$10,700