Answer the following questions using the information below: Peggy's Pillows produces and sells a decorative pillow for $75.00 per unit. In the first month of operation, 2,000 units were produced and 1,750 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes: Variable manufacturing costs Variable marketing costs Fixed manufacturing costs Administrative expenses, all fixed Ending inventories: $20.00 per unit $ 3.00 per unit $ 7.00 per unit $15.00 per unit Direct materials WIP Finished goods 250 units 15) What is operating income using variable costing? 15) C) $78,750 A) $52,500 E) none of the above B) $65,750 D) S47,000