Grant Company produces and sells a specialized product for $$40$ per unit. In the first

month of operation, $3,200$ units were produced and $2,050$ units were sold. The company

did not have any material or work in process inventory at the end of the month. Actual

fixed costs are the same as the amount budgeted for the month. Fixed manufacturing cost

is allocated to products based on units produced. Other information for the month

includes:

Variable manufacturing costs $$14$ per unit

Variable marketing costs $ $4$ per unit

Fixed manufacturing costs $$18,560$ per month

Administrative expenses, all fixed $$8,000$ per month

$3.(1$ point$)$ What is operating income under variable costing?

a$.$ $$25,210$

b$.$ $$18,540$

c$.$ $$26,540$

d$.$ $$48,440$

e$.$ $$33,410$

f$.$ $$37,100$

g$.$ $$45,100$

h$.$ None of the above