Required information Last year, Walsh Company manufactured 25,000 units and sold 22,000 units. Production costs were as follows: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead $100,000 75,000 50,000 75,000 Total sales were $440,000, total variable selling and administrative expenses were $110,000, and total fixed selling and administrative expenses were $45,000. There was no beginning inventory. What was the operating income under variable costing?