Slider Slicker experienced the following costs in 2011 (assume the same unit costs in all years):

Direct materials	$8.75 / unit
Direct labor	$5.50 / unit
Manufacturing Overhead Costs

	Variable	$4.85 / unit
	Fixed	$87,250

Selling & Administrative Costs

	Variable selling	$1.05 / unit
	Fixed selling	$8,000
	Fixed administrative	$2,000

There were 6,000 units in beginning inventory. During the year the company manufactured 60,000 units and sold 63,500 units. If net income using variable costing was $109,750, how much is net income using full costing?

Answer

	A.	$103,375
	B.	$105,375
	C.	$111,375
	D.	$113,375