Last year, fixed manufacturing overhead costs were $34,000, variable production costs were $36,000, fixed selling and administration costs were $24,400, and variable selling administrative expenses were $9,600. There were 500 units in inventory with a cost of $6,000. During the year, 3,000 units were produced and 2,400 units were sold at a price of $42 per unit. Under variable costing, what would be the operating income (loss)?

Multiple Choice

• ($4,400).
• $6,000.
• $4,000.
• ($2,000).