During its first year of operations, Carlos Manufacturing Company incurred the following costs to produce 8,000 units of its product: Direct materials Direct labor... Variable manufacturing overhead Fixed manufacturing overhead $7 per unit $3 per unit $18 per unit $450,000 in total The company also incurred the following costs in the sale of 7,500 units of product during its first year Variable selling and administrative $2 per unit Fixed selling and administrative. $60,000 in total Assume that direct labor is a variable cost. If Carlos' absorption costing net operating income for this first year is $118,125, what would its variable costing net operating income be for this first year? Select one: O a. $86,000 O b. $90,000 c. $104,125 O d. $146,250