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 (17,700 units)		$885,000
Cost of goods sold		575,250
Gross margin		309,750
Selling and administrative expenses:
Fixed	141,600
Variable	123,900	265,500
Net operating income		$44,250

During July, the company's variable production costs were $24.50 per unit and its fixed manufacturing overhead totaled $149,400.

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

$36,450

$44,250

$52,050

$33,250