Sandy Corporation has provided the following cost data for last year when 50,000 units were produced and sold:

Raw materials

$200,000

Direct labor

100,000

Manufacturing overhead

200,000

Selling and administrative expense

150,000

All costs are variable except for $100,000 of manufacturing overhead and $100,000 of selling and administrative expense.

If the selling price is $10 per unit, the net operating income (or loss)from producing and selling 120,000 units would be:

A.$460,000

B.$80,000

C.$85,000

D.$105,000