Last year, Walsh Company manufactured 25,000 units and sold 22,000 units Production costs were as follows: Direct materials Direct labour $100,000 Variable manufacturing overhead Fuced manufacturing overhead 75,000 50.000 75.000 Total sales were $440,000, total variable selling and administrative expenses were $110,000, and total fixed telling and administrative expenses were 545,000 There was no beginning inventory. Assume that direct labour is a variable cost What was the operating income under variable costing? Select one O a $2,000 O b. $12,000 O c $21,000 O d. 59.000