Tany Corporation is a small table manufacturing company operating in the north of Puerto Rico.

Managers estimate the following costs per unit (one table)

Direct material (DM)

$6.00

Direct labor (DL)

$4.00

Variable manufacturing overhead (VMO)

$3.00

Variable administrative expenses (VAE)

$1.00

The estimated contribution margin is

30%

Monthly fixed costs are

Manufacturing

$10,000.00

Administrative

$5,000.00

Total unit sold during last month is 2518, what is the total operating income.

a. between $100 and $120

b. between 120 and 140

c. between 140 and $60

d.between 160 and 180