Kilihea Corporation produces a single product. The company's absorption costing income statement for July follows:

Kilihea Corporation Income Statement For the month ended July 31
Sales (18,500 units)	$851,000
Cost of goods sold	579,050
Gross margin	271,950
Selling and administrative expenses:
Fixed	129,500
Variable	92,500
Total selling and administrative expense	222,000
Net operating income	$ 49,950

The company's variable production costs are $22.30 per unit and its fixed manufacturing overhead totals $176,000 per month.

Net operating income under the variable costing method for July would be: