Last year, Fabre Company produced $20,000$ units and sold $18,000$ units at a price of $$12.$ Costs for last year were as follows:

Direct materials$---.....................$ $$25,000$

Variable selling expense$----.----9,000$

Fixed selling expense$----.........--7,500$

Fixed administrative expense$--15,500$

Fixed factory overhead is applied based on expected production. Last year, Fabre expected to produce $20,000$ units. What is operating income for last year under variable costing?

$$111,800$

$$66,350$

$$91,780$

$$78,400$

$$82,200$