Start Me Up Inc. manufactures a caffeinated energy drink that sells for $4.80 each. The results for its first year of operations appear in the table below:

Projections

Number of drinks produced 6,500

Number of drinks sold 47,700

Direct materials per drink $0.73

Direct labor per drink $0.43

Variable manufacturing overhead per drink . $0.33

Total fixed manufacturing overhead $43,505

Total fixed selling and administrative costs $59,000

_______________________________________________

Required:

1. Compute the operating income for the first year under full costing.

2. Compute the operating income for the first year under variable costing.

(For all requirements, do not round intermediate calculations.)

1.Operating income for the first year under full costing _____________

2.Operating income for the first year under variable costing ______________