Smooth Incorporated manufactures hair brushes that sell at wholesale for $2.60 per unit. Budgeted production in both 2021 and 2022 was 4,600 units. There was no beginning inventory in 2021. The following data summarized the 2021 and 2022 operations:

	2021	2022
Units sold	3,300	4,800
Units produced	4,600	4,600
Costs:
Variable factory overhead per unit	$ 0.55	$ 0.65
Fixed factory overhead	$ 2,070	$ 2,070
Variable marketing per unit	$ 0.75	$ 0.80
Fixed Selling and Administrative	$ 650	$ 650

Variable costing operating income for 2021 is calculated to be: (Do not round intermediate calculations. Round your final answers to whole dollar amounts.)

Multiple Choice

• $1,726.

• $2,155.

• $1,673.

• $1,570.

• $2,325.