Information from Orange Time, Inc's first year of operations is available below:

Sales in units 8,000 Production in units 10,000 Manufacturing costs: Direct labor $3 per unit Direct material $5 per unit Variable overhead $1 per unit Fixed overhead $100,000 SG&A costs: Variable Cost $5 per unit Fixed cost 80,000 Sales price per unit $55

If Orange Time, Inc uses variable costing, what amount of income before income taxes would it have reported?

Group of answer choices $148,000 $(7,500) $230,000 $168,000