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 (14,200 units)	$766,800
Cost of goods sold	545,280
Gross margin	221,520
Selling and administrative expenses:
Fixed	113,600
Variable	71,000
Total selling and administrative expense	184,600
Net operating income	$ 36,920

The company's variable production costs are $26.40 per unit and its fixed manufacturing overhead totals $178,500 per month.

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