Hayes Company operated at normal capacity during the current year, producing 52818 units of its single product. Sales totalled 46544 units at an average price of $22.96 per unit. Variable manufacturing costs were $10.73 per unit, and variable marketing costs were $5.14 per unit sold. Fixed costs were incurred uniformly throughout the year and amounted to $187104 for manufacturing and $53517 for marketing. There were no opening inventories.

What is Hayes operating income under direct (variable) costing?

Select one:

a. $89376b. $22056c. $111601d. $117958