The IS-78304 company reports the following information for last year: Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead costs $ 657,000 $ 83,000 $ 131,000 $ 109,000 $ 48,000 $ 222,000 $206,000 Inventories Raw materials Work in process Finished goods Beginning $ 8,400 $ 6,000 Ending $ 10,600 $ 20,500 $ 79,000 $ 25,800 The company closes out any underapplied or overapplied overhead to Gost of Goods Sold. What was the IS-78304 company's net operating income for last year? $ 64,000 $ 43,500 $27,500 $ 75,500