Roland Company produces a single product.The selling price per unit is $100.Production costs include the

Roland Company produces a single product. The selling price per unit is $100. Production costs include the

following:

Direct material per unit                                                       $15

Direct labor per unit                                                              20  

Variable manufacturing overhead per unit                             3

Fixed manufacturing overhead for the year                $150,000    

The company also had fixed selling and administrative expenses of $80,000 for the year. During the year, the company produced 40,000 units of product and sold 35,000 units of product. How much is net operating income using variable costing?