Exclusive Decor's Budgeted Income Statement for 2014 Follows How Much Income Before Taxes Will Appear on a Flexible

Exclusive Decor's budgeted income statement for 2014 follows: $\begin{array}{lr}\text { Sales (10,000 units) }&&\$128,000\\\text { Less: }\\\text { Direct materials } & \$ 27,600 \\\text { Direct labor } & 6,000 \\\text { Variable factory overhead } & 16,800 \\\text { Fixed factory overhead } & 15,000 \\\text { Fixed selling \& admin expenses } & 30,000&95,400\\\text { Income before taxes }&&\$32,600\end{array}$ How much income before taxes will appear on a flexible budget for 11,000 units?

A) $35,860
B) $40,140
C) $85,140
D) $40,360