Determine operating income for 20X0, assuming the firm uses the variable-costing approach to product costing. (Do not prepare a statement.)

Back ground

Kwan Manufacturing Co. (Variable & Absorption Costing)

Kwan Manufacturing Company data for 20X0 follow:

Sales: 11,000 units at $19 each
Actual production	15,500 units
Expected volume of production	15,500 units
Manufacturing costs incurred
Variable	$124,000
Fixed	54,000
Nonmanufacturing costs incurred
Variable	$ 11,000
Fixed	17,800