Eagle Corporation manufactures a picnic table. Shown below is Eagle's cost structure:

	Variable cost per table	Total fixed cost for the year
Manufacturing cost	$119	$260,500
Selling and administrative	$6	$35,428

In its first year of operations, Eagle produced and sold 10,420 tables. The tables sold for $179 each.

How would Eagle's variable costing net operating income have been affected in its first year if only 9,170 tables were sold instead of 10,420?

Which of the below is correct?

net operating income would have been $67,500 lower net operating income would have been $90,000 lower net operating income would have been $43,750 lower net operating income would have been $73,500 lower