KassiaCorporationmanufactures and sells one product. The following information pertains to the company's first year of operations:

Selling price per unit $100

Variable costs per unit:

Manufacturing:

Direct materials $9

Direct labor $20

Variable manufacturing overhead $11

Variable selling and administrative expense $10

Fixed costs per year:

Fixed manufacturing overhead $45,000

Selling and administrative expense $68,500

Production 5,000 units

Sales 4,500 units

Q:) What is net operating income under variable costing in the first year?