Aerotrino produces and sells popular t-shirts. Following is information about its t-shirts for 2014: Selling price $15.00 per t-shirt Variable costs:...

Aerotrino produces and sells popular t-shirts. Following is information about its t-shirts for 2014:

Selling price                                                                           $15.00 per t-shirt

Variable costs:

      Production (manufacturing costs)                                       $3.50 per t-shirt

      Selling & administration                                                     $1.00 per t-shirt

Fixed costs:

      Production (manufacturing costs)                                $1,000,000 per year

      Selling & administration                                              $2,000,000 per year

During 2014, the company produced 400,000 t-shirts and sold 350,000 of them. Assume that there was no beginning inventory. How much is the net income under variable costing?