A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

Selling price	$112
Units in beginning inventory	0
Units produced	5,500
Units sold	5,300
Units in ending inventory	200
Variable costs per unit:
Direct materials	$33
Direct labour	$37
Variable manufacturing overhead	$5
Variable selling and administrative	$6
Fixed costs:
Fixed manufacturing overhead	$71,500
Fixed selling and administrative	$79,500

What is the net operating income for the month under variable costing?

1)

$2,600

2)

$2,700

3)

$45,100

4)

$13,300