Peak Manufacturing produces snow blowers. The selling price per snow blower is $100. Costs involved in production are:

Direct material per unit	$20
Direct labor per unit	12
Variable manufacturing overhead per unit	10
Fixed manufacturing overhead per year	$148,500

In addition, the company has fixed selling and administrative costs of $150,000 per year. During the year, Peak produces 45,000 snow blowers and sells 30,000 snow blowers. How much is net income using variable costing?

Answer

	A.	$1,441,500
	B.	$1,491,000
	C.	$1,740,000
	D.	$1,440,000