Start Me Up Incorporated 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	53,000
Number of drinks sold	47,000
Direct materials per drink	$ 0.66
Direct labor per drink	$ 0.36
Variable manufacturing overhead per drink	$ 0.26
Total fixed manufacturing overhead	$ 37,100
Total fixed selling and administrative costs	$ 55,500

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.