The Captain Carl Company experienced the following costs in 2007:

Direct materials	$4.00/unit
Direct labor	$8.00/unit
Manufacturing Overhead Costs
Variable	$2.00/unit
Fixed	$150,000
Selling and Administrative Costs
Variable selling	$1.00/unit
Fixed selling	$30,000
Fixed administrative	$20,000

During the year the company manufactured 50,000 units and sold 45,000 units. If net income for the year was $265,000 using full costing, what would net income be if the company used variable costing? Assume no beginning inventories.

	A	$250,000
	B	$265,000
	C	$270,000
	D	$450,000