Northwood Company manufactures basketballs. The company has a ball that sells for $$25.$ At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high, totaling $$15\mathrm{.}00$ per ball, of which $60\%$ is direct labor cost.

Last year, the company sold $32,000$ of these balls, with the following results:

Sales $(32,000$ balls$)$ $ $800,000$

Variable expenses $480,000$

Contribution margin $320,000$

Fixed expenses $221,200$

Net operating income $ $98,800$