Krepps Corporation produces a single product. Last year, Krepps manufactured 33,910 units and sold 28,100 units. Production costs for the year were as follows:

Direct materials	$	247,543
Direct labor	$	176,332
Variable manufacturing overhead	$	284,844
Fixed manufacturing overhead	$	474,740

Sales totaled $1,405,000 for the year, variable selling and administrative expenses totaled $148,930, and fixed selling and administrative expenses totaled $247,543. 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: