Letcher Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Variable costs per unit: Direct materials 93 Fixed costs per year: Direct labor Pixed manufacturing overhead Fixed selling and administrative expense8 $1,462,500 4,972,500 $2,552,000 The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 58,500 units and sold 56,500 units. The company's only product is sold for $239 per unit. The company is considering using either super-variable costing or a variable costing system that assigns $25 of direct labor cost to each unit that is produced. Which of the following statements is true regarding the net operating income in the first year