Lewes Company produced 9,200 units of inventory and sold 7,200. The company incurred the following production costs:

Variable manufacturing cost: $12.00 per unit

Fixed manufacturing overhead cost: $120,000

Assuming the company sells its product at a price of $37 per unit, and incurred $34,000 in selling and administrative cost, what is the amount of net income under variable costing?

Multiple Choice

$26,000

$125,000

$41,000

$86,000