Eagle Corporation manufactures a picnic table. Shown below is Eagle's cost structure:

	Variable cost per table	Total fixed cost for the year
Manufacturing cost	$52	$225,200
Selling and administrative	$9	$34,906

In its first year of operations, Eagle produced and sold 11,260 tables. The tables sold for $138 each.

How would Eagle's absorption costing net operating income have been affected in its first year if 13,730 tables were produced instead of 11,260 and Eagle still sold 11,260 tables? (Round your intermediate calculations to 2 decimal places.)

Which of the below is correct?

net operating income would have been $45,036 higher net operating income would have been $129,536 lower net operating income would not have been affected net operating income would have been $40,536 higher