Elbrege Corporation manufactures a single product. The company has supplied the following data: Selling price per unit $ 30 Variable costs per unit: Production $ 7 Selling and administrative $ 4 Fixed costs per year: Production $ 75,000 Selling and administrative $ 50,000 There was no beginning inventory. During the year 25,000 units were produced and 20,000 units were sold. The company's net operating income for the year under variable costing would be:

Multiple Choice

$255,000

$270,000

$200,000

$280,000