Pauley Company provides home health care. Pauley charges $35 per hour for the professional care. The variable costs are $21 per hour and the fixed costs are $78,000. Next year, Pauley expects to charge out 12,000 hours of home health care. What is the budgeted operating income?

a.$90,000

b.$174,000

c.$168,000

d.$342,000

e.$420,000