Brislin Gifts Makes Ceramic Mugs and Has the Following Amounts

Brislin Gifts makes ceramic mugs and has the following amounts for 2014 (Assume the same unit costs in all years) : $\begin{array}{lr}\text { Selling price } & \$ 9.00 \text { per mug } \\\text { Variable production cost } & \$ 2.50 \text { per mug } \\\text { Variable selling cost } & \$ 1.10 \text { per mug } \\\text { Fixed production cost } & \$ 100,000 \text { per month } \\\text { Fixed selling and administrative cost } & \$ 60,000 \text { per month }\end{array}$ Production and sales in units for the first three months of 2014 are as follows: $\begin{array}{lll}\text { Year } &\text { Production }& \text { Sales }\\\text { January } & 50,000 & 44,000 \\\text { February } & 40,000 & 45,000 \\\text { March } & 44,000 & 46,000\end{array}$
Inventory at January 1, 2014 consisted of 1,000 mugs. How much is net income for January using variable costing?

A) $89,600
B) $77,600
C) $67,480
D) None of these answer choices are correct.