Sunny Corporation was operating at 100% of capacity during its first month of operations with the following results:

Sales (160 units)		$204,000
Production costs (200 units):
Direct materials	$100,000
Direct labor	60,000
Variable factory overhead	40,000
Fixed factory overhead	1,000	201,000
Operating expenses:
Variable operating expenses	$12,000
Fixed operating expenses	2,000	14,000

What is the amount of the manufacturing margin that would be reported on the variable costing income statement?

Select one:

a.

$4,000

b.

$38,800

c.

$30,000

d.

$44,00