Brislin Gifts Makes Ceramic Mugs and Has the Following Amounts

Multiple Choice

Brislin Gifts makes ceramic mugs and has the following amounts during 2014 (Assume the same unit costs in all years) : $$\begin{array} { l r } \text { Selling price } & \$ 9.00 \text { per mug } \\\text { Variable production cost } & \$ 2.50 \text { per mug } \\\text { Variable selling cost } & \$ 1.10 \text { per mug } \\\text { Fixed production cost } & \$ 100,000 \text { per month } \\\text { Fixed selling and administrative cost } & \$ 60,000 \text { per month }\end{array}$$ Production and sales in units for the first three months of 2014 are as follows: $\begin{array}{lll}\text { Year } &\text { Production }& \text { Sales }\\\hline \text { January } & 50,000 & 44,000 \\\text { February } & 40,000 & 45,000 \\\text { March } & 50,000 & 45,000\end{array}$
Inventory at January 1, 2014 consisted of 1,000 mugs. How much is net income for February using full costing?

A) $70,500
B) $83,000
C) $183,000
D) None of these answer choices are correct.