During its most recent fiscal year, Rapheal Enterprises sold 200,00 electric screwdrivers at a price of $15 each. Fixed costs amounted to $400,000 and pretax in come was $600,000. What amount should have been reported as variable costs in the company's contribution margin income statement for the year in question?

1. $2,400,000
2. $1,600,000
3. $3,000,000
4. $2,000,000
5. $1,000,000