Kilihea Corporation produces a single product. The company's absorption costing income statement for July follows:

Kilihea Corporation Income Statement For the month ended July 31
Sales (12,100 units)		$617,100
Cost of goods sold		387,200
Gross margin		229,900
Selling and administrative expenses:
Fixed	96,800
Variable	60,500	157,300
Net operating income		$72,600

During July, the company's variable production costs were $24.00 per unit and its fixed manufacturing overhead totaled $103,400.

Net operating income under the variable costing method for July would be:

Noreen 4e Rechecks 2017-24-03

a. $66,000

b. $72,600

c. $62,800

d. $79,200