The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.

Selling price	$121
Units in beginning inventory	800
Units produced	8,700
Units sold	8,800
Units in ending inventory	700
Variable costs per unit:
Direct materials	$26
Direct labor	$43
Variable manufacturing overhead	$7
Variable selling and administrative	$17
Fixed costs:
Fixed manufacturing overhead	$69,600
Fixed selling and administrative	$163,300

What is the net operating income for the month under absorption costing?

$3,800

$12,700

$21,100

$3,800