Sleep Time Produces Mattresses

Multiple Choice

Sleep Time produces mattresses. Each mattress has a variable cost of $260, fixed costs of $56,000 per month, and a unit selling price of $500. If the company produces and sells 400 mattresses in February, how much profit will the company expect for March assuming that number of mattresses sold and selling price per mattress remains the same as that of February month?

A) $96,000
B) $160,000
C) $40,000
D) $200,000