Barrett, Inc. reports the following information for the year ended December 31: Beginning Finished Goods Inventory 50 units Units produced 440 units Units sold 490 units Sales price $ 150 per unit Direct materials $ 30 per unit Direct labor $ 12 per unit Variable manufacturing overhead $ 13 per unit Fixed manufacturing overhead $ 15 comma 500 per year Variable selling and administrative costs $ 8 per unit Fixed selling and administrative costs $ 12 comma 500 per yearThe beginning Finished Goods Inventory costs were $3,300 under absorption costing and $2,550 under variable costing. What is the operating income using variable costing?

A.$3,700

B.$40,200

C.$40,500

D.$10,700