Krepps Corporation produces a single product. Last year, Krepps manufactured 34,080 units and sold 28,200 units. Production costs for the year were as follows:

Direct materials	$ 259,008
Direct labor	$ 153,360
Variable manufacturing overhead	$ 269,232
Fixed manufacturing overhead	$ 443,040

Sales totaled $1,494,600 for the year, variable selling and administrative expenses totaled $163,560, and fixed selling and administrative expenses totaled $224,928. 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: