The following data pertains to the Montrose Company's three products: Unit sales per month Selling price per unit Variable costs per unit Unit contribution margin Batches Setups Direct fixed costs Advertising Supervision Common fixed costs Inspecting products ($10,000) Materials handling ($4,000) Customer service ($5,000) Plant depreciation ($6,000) General administration ($8,000) 9,000 14,000 $11.25 9.00 $3.00 $2.25 10 8,000 $7.50 7.00 0.50 $6.00 3.00 $3,000 5,000 $2,000 5,000 $1,000 5,000 When Montrose converted over to ABC it discovered the following: 20 percent of the inspection activity was unused. The inspections used were based on the number of batches produced. 10 percent of the materials handling activity was unused. The materials handling activity used was based on the number of production runs. inspecting products materials handling 50 percent of the customer service activity was unused customer service The usage was given as follows: M 1,000, N 1,000, o 500 plant depreciation general administration facility level cost facility level cost The operating income for Montrose would be a, $19,000. b. $8,500. Oc, $27,000. d. $9,000