ABC Corporation produces one single product. The sales price and product cost are listed below: Sales price is $15 per unit Variable Selling, G &A is $2.00 per unit Direct Material is $2.50 per unit Direct Labor is $1.00 per unit Variable Manufacturing Factory Overhead is $.50 per unit Fixed Selling G&A is $14,000 Fixed Manufacturing Factory Overhead is $20,000 During its first year of operations, the company produced 5,000 units and sold 3,800 units. Assume there is no beginning and ending work-in-process inventory.

Compute net operating income if the company adopts the variable costing method.