In September, Larson Inc. sold 40,000 units of its only product for $383,000, and incurred a total cost of $355,000, of which $38,000 was fixed costs. The flexible budget for September showed total sales of $430,000. Among variances for the period were: total variable cost flexible-budget variance, $7,000U; total flexible-budget variance, $74,000U; and, sales volume variance, in terms of contribution margin, $40,000U. The master budget operating income for September, to the nearest dollar, was:

Multiple Choice $160,000. $142,000. $120,000. $102,000. $122,000.