Peterson Corporation produces a single product. Data from the company's records for last year follow:

Units in beginning inventory	0
Units produced	70,000
Units sold	60,000
Sales	$1,400,000
Manufacturing costs:
Variable	$630,000
Fixed	$315,000
Selling and administrative expenses:
Variable	$98,000
Fixed	$140,000

Under variable costing, net operating income would be:

$217,000

$307,000

$352,000

$374,500