Newton Corporation entered into the following transactions during its first year of operations. (Assume all transactions involve cash.)

1) Acquired $2,000 of capital from the owners.

2) Purchased $600 of direct raw materials.

3) Used $400 of these direct raw materials in the production process.

4) Paid production workers $800 cash.

5) Paid $400 for manufacturing overhead.

6) Started and completed 200 units of inventory.

7) Sold 50 units at a price of $12 each.

8) Paid $80 for selling and administrative expenses.

The amount of net income for the year was:

a. $100.

b. $75.

c. $50.

d. $120.