Wet Pets Inc. makes 100-gallon plexiglass aquariums. They reported the following financial information for last year:

Direct labor:	7,200 hours @ $20 per hr.
Production manager salary:	$60,000
Factory rent:	$28,800
Equipment maintenance:	$12,000 (considered a variable expense)
Equipment depreciation:	$12,000
Production for the year:	12,000 units
Total Revenue:	$1,200,000
Total aquariums sold during the period:	10,000 units
Operating Income under absorption costing (after non-production expenses):	$244,800

Assume that the fixed costs were the same on a per-unit basis during the prior period. What would Operating Income be under variable costing? (Round per-unit costs to the nearest cent.)

Select one:

a. $226,000

b. $228,000

c. $263,592

d. None of these options are correct.

e. $261,600