US company Marys Fine Fashions manufactures and sells various types of womens clothing. At the end of 2008, Mary had estimated for the production and sale of 25 000 short-sleeve shirts.

Each shirt has a standard calling for 2.5 yards of direct material at a standard cost of $1.30 per yard and 15 minutes of direct labour time at a standard cost of $.20 per minute.

During 2009, the company actually produced and sold 23 000 shirts. These 23 000 shirts had an actual direct materials cost of $77 142 (59 340 yards at $1.30 per yard) and an actual direct labour cost of $63 250 (253 000 minutes at $.25 per minute).

Each shirt sells for $25. What is Marys net income (loss) based on a flexible budget?

		$431 250
		$347 400
		$332 925
		$316 250