Assume the following information for a company that produced and sold $10,000$ units during Year $1.$ It also produced $15,000$ units and sold $12,000$ units during Year $2,$ while producing $12,000$ units and selling $15,000$ units in Year $3.$

Per Unit Per Year

Selling price $ $240$

Direct materials $ $86$

Direct labor $ $55$

Variable manufacturing overhead $ $10$

Sales commission $ $11$

Fixed manufacturing overhead $ $450,000$

Fixed selling and administrative expense $ $250,000$

Using variable costing, what is the net operating income for Year $3?$

Multiple Choice

$$685,000$

$$635,000$

$$920,000$

$$470,000$