Indiana Corporation produces a single product that it sells for $9 per unit. During the first year of operations, 100,000 units were produced, and 90,000 units were sold. Manufacturing costs and selling and administrative expenses for the year were as follows in the picture. What was Indiana Corporation's net operating income for the year using variable costing?

$371,000

$281,000

$181,000

$271,000

Raw materials..... Direct labor Factory overhead. Selling and administrative... Fixed Costs Variable Costs $1.75 per unit produced $1.25 per unit produced $100,000 $0.50 per unit produced $70,000 $0.60 per unit sold