Start Me Up Inc. manufactures a caffeinated energy drink that sells for $4.10 each. The results for its first year of operations appear in the table below:

	Projections
Number of drinks produced		48,000
Number of drinks sold		46,000
Direct materials per drink	$	0.56
Direct labor per drink	$	0.26
Variable manufacturing overhead per drink	$	0.16
Total fixed manufacturing overhead	$	28,800
Total fixed selling and administrative costs	$	50,500

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.

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