Steering Manufacturing produces snow shovels. The selling price per snow shovel is $31.00. There is no beginning inventory. Costs involved in production are: Direct material $4.00 Direct labor 4.00 Variable manufacturing overhead 3.00 Total variable manufacturing costs per unit $11.00 Fixed manufacturing overhead per year $180,200 In addition, the company has fixed selling and administrative costs of $162,600 per year. During the year, Steering produces 53,000 snow shovels and sells 48,270 snow shovels.

What is net income using variable costing?