The beginning Finished Goods Inventory costs were $3,500 under absorption costing and $2,250 under variable costing. What is the operating income using variable costing?

Barrett, Inc. reports the following information for the year ended December 31: Beginning Finished Goods Inventory Units produced Units sold Sales price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative costs Fixed selling and administrative costs 50 units 450 units 500 units $130 per unit $20 per unit $12 per unit $13 per unit $15,600 per year $8 per unit $12,000 per year O A. $10,900 OB. $37,400 OC. $38,500 OD. $4,400