Fey Company has the following information:

$\backslash$table$[[$Variable production costs,$$14$ per unit$],[$Fixed $OH$ production costs,$$140,000$ per year$],[$Variable selling & admin,$$7$ per unit$],[$Fixed selling & admin.,$$112,000$ 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 income under absorption costing for the year is $$140,000,$ 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$.$ $$168,000$

b$.$ $$112,000$

c$.$ $$140,000$

d$.$ $$245,000$