During Year 2, XYZ Inc. reported an absorption costing income from operations of $100,000. The following information is given to you with respect to XYZs Year 2 activity:

- Beginning Inventories: 10,000 units (including $3 of fixed overhead per unit).

- During Year 2, XYZ Inc. produced and sold 90,000 and 95,000 units respectively.

- Fixed overhead per unit on units produced during Year 2 amounted to $2.50 per unit.

- XYZ employs a FIFO (First-in First-out) approach to inventory sales.

Based on the information provided, variable costing income from operations would have been:

Select one:

a. $117,500.

b. $112,500.

c. $82,500.

d. $87,500.