Assume the following information for a company that produced and sold 10,000 units during its first year of operations:

	Per Unit	Per Year
Selling price	$ 200
Direct materials	$ 82
Direct labor	$ 50
Variable manufacturing overhead	$ 10
Sales commission	$ 8
Fixed manufacturing overhead		$ 300,000

Using variable costing, what is the companys net operating income?

Multiple Choice

• $180,000

• $280,000

• $500,000

• $200,000