Vaswani Company provides the following information for their first year of operations: Sales, 5,000 units @ $10 each; total production, 7,500 units Selling and administrative costs: Fixed, $1,000; Variable, $1 per unit Production costs per unit: Direct materials, $2; Direct labor, $2; Variable overhead, $1 Fixed manufacturing overhead, $7,500 If Vaswani uses direct costing, how much is net income?