Kevin company manufactures 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	$8
Direct labor	$20
Variable manufacturing overhead	$11
Variable selling and administrative expense	$18
Fixed costs per year:
Fixed manufacturing overhead	$48,000
Selling and administrative expense	$61,800

Production	6,000 units
Sales	4,500 units

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

A.: $