Start Me Up Inc. manufactures a caffeinated energy drink that sells for $4.70 each. The results for its first year of operations appear in the table below:

	Projections
Number of drinks produced		51,000
Number of drinks sold		46,600
Direct materials per drink	$	0.62
Direct labor per drink	$	0.32
Variable manufacturing overhead per drink	$	0.22
Total fixed manufacturing overhead	$	33,660
Total fixed selling and administrative costs	$	53,500

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.