Wilcher's construction company reported the following information from their operations last year:

Direct Labor: $5,000$ hours @ $$20/$hr

Production Manager Salary: $$60,000$

Fixed Factory Rent: $$5,000$ per month

Equipment Maintenance $($Variable Expense$)$: $$1,500$ per month

Equipment Depreciation: $$40,000$

Absorption Income: $$1,200,000$

Production equaled sales for the period. What would income be under variable costing?

Select one:

a$.$ $$1,200,000$

b$.$ $$1,360,000$

c$.$ $$1,040,000$

d$.$ We don't have enough information to determine income under variable costing