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 (14,100 units)	$648,600
Cost of goods sold	454,020
Gross margin	194,580
Selling and administrative expenses:
Fixed	98,700
Variable	70,500
Total selling and administrative expense	169,200
Net operating income	$ 25,380

The company's variable production costs are $23.20 per unit and its fixed manufacturing overhead totals $131,500 per month.

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

	$29,980
	$17,580
	$20,780
	$25,380