During its most recent fiscal year, Raphael Enterprises sold 280,000 electric screwdrivers at a price of $17.40 each. Fixed costs amounted to $784,000 and pretax income was $1,064,000. What amount should have been reported as variable costs in the company's contribution margin income statement for the year in question?

Answer is one of the following:

$1,848,000

$3,808,000

$2,240,000

$4,872,000