Zhender Inc. manufactures hair brushes that sell at wholesale for $2.60 per unit. Budgeted production in both 2018 and 2019 was 3,000 units. There was no beginning inventory in 2018. The following data summarized the 2018 and 2019 operations:

2018 2019

Units sold 2,500 3,200

Units produced 3,000 3,000

Costs: Variable factory overhead per unit $ 0.65 $ 0.65

Fixed factory overhead $ 1,290 $ 1,290

Variable marketing per unit $ 0.80 $ 0.80

Fixed Selling and Administrative $ 650 $ 650

Variable costing operating income for 2019 is calculated to be:

Multiple Choice

$1,150.

$1,295.

$1,740.

$1,654.

$850.