Red and White Company reported the following monthly data:

Units produced 2,000 units

Sales price $25 per unit

Direct materials $1 per unit

Direct labor $2 per unit

Variable overhead $3 per unit

Fixed overhead $8,000 in total

What is Red and Whites net income under variable costing if 980 units are sold and operating expenses are $12,000?

• $(1,380)
• $(2,000)
• $ 2,700
• $ 6,620