18-4. Start Me Up Inc. manufactures a caffeinated energy drink that sells for $4.40 each. The results for its first year of operations appear in the table below:

Number of drinks produced		49,500
Number of drinks sold		46,300
Direct materials per drink	$	0.59
Direct labor per drink	$	0.29
Variable manufacturing overhead per drink	$	0.19
Total fixed manufacturing overhead	$	31,185
Total fixed selling and administrative costs	$	52,000

Required:

1. Compute the operating income for the first year under full costing.

2. Compute the operating income for the first year under variable costing.

(For all requirements, do not round intermediate calculations.)