Krepps Corporation produces a single product. Last year, Krepps manufactured 31770 units and sold 26,400 units. Production costs for the year were as follows: 41 Direct materials $ 228, 744 Direct labor $ 142,965 Variable manufacturing overhead $ 247,806 Fixed manufacturing overhead $ 508,320 Sales totaled $1,161,600 for the year, variable selling and administrative expenses totaled $139,920, and fixed selling and administrative expenses totaled $225,567. 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