Diego Company manufactures one product that is sold for $80 per unit. The following information pertains to the company's first year of operations in which it produced 40,000 units and sold 35,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $ $ $ $ 24 14 2 4 $800,000 $496,000 4. What is the company's net operating income under variable costing? $ 40