Aerotrino produces and sells popular t-shirts. Following is information about its t-shirts for 2014:

Selling price $15.00 per t-shirt

Variable costs:

Production (manufacturing costs) $3.50 per t-shirt

Selling & administration $1.00 per t-shirt

Fixed costs:

Production (manufacturing costs) $1,000,000 per year

Selling & administration $2,000,000 per year

During 2014, the company produced 400,000 t-shirts and sold 350,000 of them. Assume that there was no beginning inventory. How much is the net income under variable costing?