Aquamarine Company has the following information for the month of May of the current year:

Selling price

$220 per unit

Variable production costs

$90 per unit produced

Variable selling and admin. expenses

$25 per unit sold

Fixed production costs

$620,000

Fixed selling and admin. expenses

$350,000

Units produced

12,000 units

Units sold

11,500 units

There were no beginning inventories.

Compute Aquamarine's operating income for the month of May using the variable-costing method.

$480,000

$237,500

$387,500

$387,500