Krepps Corporation produces a single product. Last year, Krepps manufactured 26,030 units and sold 20,700 units. Production costs for the year were as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $192,622 $143,165 $210,843 $494,570 Sales totaled $983,250 for the year, variable selling and administrative expenses totaled $120,060, and fixed selling and administrative expenses totaled $161,386. There was no beginning inventory. Assume that direct labor is a variable cost. Under variable costing, the company's net operating income for the year would be