A Manufacturer Reports the Following Information Below for Its First

A manufacturer reports the following information below for its first three years in operation. $\begin{array} { l r r r } & & & \\& \text { Year 1 } & \text { Year 2 } & \text { Year 3 } \\\text { Income under variable costing } & \$ 76,000 & \$ 109,000 & \$ 115,000 \\\text { Beginning inventory (units) } & 0 & 800 & 500 \\\text { Ending inventory (units) } & 800 & 500 & 0 \\\text { Fixed manufacturing overhead per unit } & \$ 8.00 & \$ 8.00 & \$ 8.00 \\\hline\end{array}$
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Income for year 2 using absorption costing is:

A) $117,000.
B) $109,000.
C) $111,000.
D) $106,600.
E) $115,000.