Round and Round Inc. sells its products for $115 each. The current production level is 65,000 units, although only 55,000 units are anticipated to be sold. The following data were reported by the company in 2020: Unit manufacturing costs are: Direct materials $ 16.00 Direct manufacturing labor $ 25.00 Variable manufacturing costs $ 35.00 Total fixed manufacturing costs $350,000 Marketing expenses $3.00 per unit, plus $205,000 per year Using the information, prepare an income statement using variable costing. What is Round and Round's operating income (loss) for 2020? $1,425,000 $890,000 $2,005,000 $4,180,000