During its most recent fiscal year, Dover, Inc. had total sales of $3,120,000. Contribution margin amounted to $1,460,000 and pretax income was $340,000. What amount should have been reported as variable costs in the company's contribution margin income statement for the year in question?

$1,800,000.

$2,780,000.

$1,320,000.

$1,120,000.

$1,660,000.