Butteco Corporation has provided the following cost data for last year when 100,000 units were produced and sold: Direct materials $200,000

Direct labor 100,000

Manufacturing overhead 200,000

Selling and administrative expense 150,000

All costs are variable except for $100,000 of manufacturing overhead and $80,000 of selling and administrative expense. There are no beginning or ending inventories. Selling price is $10 per unit. Compute net operating income from producing and selling 110,000 units.