Road Warriors, Inc. manufactures a basic road bicycle. Production and sales data for the most recent year are as follows (no beginning inventory):

Variable production costs $95 per bike

Fixed production costs $400,000

Variable selling and administrative costs $22 per bike

Fixed selling and administrative costs $550,000

Selling price $200 per bike

Production 20,000 bikes

Sales 16,000 bikes

What is the company's net income using the Variable Costing method?