Red and White Company reported the following monthly data:

Units produced                           3,100 units    

Sales price                                    $ 36 per unit    

Direct materials                         $ 6 per unit    

Direct labor                                 $ 7 per unit  

Variable overhead                    $ 8 per unit  

Fixed overhead                          $ 8,990 in total          

What is Red and White's net income under variable costing if 1,090 units are sold and operating expenses are $12,800?

• ($5,440)
• ($710)
• $389
• $3,550
• $7,360