Red and White Company reported the following monthly data:

Units produced 3,100 units

Sales price $ 36 per unit

Direct materials $ 6 per unit

Direct labor $ 7 per unit

Variable overhead $ 8 per unit

Fixed overhead $ 8,990 in total

What is Red and White's net income under variable costing if 1,090 units are sold and operating expenses are $12,800?

• ($5,440)
• ($710)
• $389
• $3,550
• $7,360