Krepps Corporation produces a single product. Last year, Krepps manufactured 34,250 units and sold 28,400 units. Production costs for the year were as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $284,275 $140,425 $256,875 $650,750 Sales totaled $1,434,200 for the year, variable selling and administrative expenses totaled $167,560, and fixed selling and administrative expenses totaled $215,775. 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