Michelman Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:

Variable costs per unit:

Direct materials

$$89$

Fixed costs per year:

Direct labor

Fixed manufacturing overhead

Fixed selling and administrative expenses

$$952,000$

$$2,550,000$

$$992,000$

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 $34,000$ units and sold $31,000$ units. The company's only product is sold for $$254$ per unit.

The company is considering using either super$-$variable costing or an absorption costing system that assigns $$28$ of direct labor cost and $$75$ of fixed manufacturing overhead to each unit that is produced. Which of the following statements is true regarding the net operating income in the first year?