Oak Mart, a producer of solid oak tables, reports the following data from its second year of business.

Sales price per unit	$	310	per unit
Units produced this year		105,000	units
Units sold this year		108,250	units
Units in beginning-year inventory		3,250	units
Beginning inventory costs
Variable (3,250 units $135)	$	438,750
Fixed (3,250 units $75)		243,750
Total	$	682,500
Manufacturing costs this year
Direct materials	$	44	per unit
Direct labor	$	70	per unit
Overhead costs this year
Variable overhead	$	3,200,000
Fixed overhead	$	7,200,000
Selling and administrative costs this year
Variable	$	1,500,000
Fixed		4,400,000

1. Prepare the current-year income statement for the company using variable costing.