In Its First Year of Operations, a Company Has Sales

Multiple Choice

In its first year of operations, a company has sales of $158,000, ending finished goods inventory of $11,500, variable manufacturing costs of $49,000, and fixed manufacturing costs of $31,000 for the year. The company pays 9% commission to its sales force and has fixed selling and administrative expenses of $27,000 annually. The company has no other variable expenses.
Assuming the company uses direct costing, the net income for the year is

A) $52,280.
B) $83,280.
C) $25,280.
D) $48,280.