Drake Company has the following information: Variable production costs $10 per unit Fixed OH production costs $100,000 per year Variable selling & admin $5 per unit Fixed selling & admin $80,000 per year Normal annual production 20,000 units Budgeted annual production 19,000 units Actual annual production 15,000 units Actual annual sales 19,000 units Beginning inventory 5,000 units The company uses the FIFO inventory method. Over- and under-applied overhead is closed directly to cost of goods sold. If the income under absorption costing for the year is $100,000, what was the net income under the variable costing method assuming that overhead was applied to production using a rate based on normal production? Select one: a. $125,000 O b. $120,000 O C. $80,000 d. $100,000