Cullumber Stoner sells handmade jewelry that she designs herself. The items aren’t expensive, and she has a loyal following in her town and the surrounding area. Cullumber incurred the following unit costs to produce 62,800 items. Direct materials $2.90 Direct labor $1.73 Variable overhead $0.79 Fixed overhead $4.29 Cullumber began the year with no inventory. During the year she sold 45,500 items for $15.16 each, incurring $0.48 in selling costs per item plus $4,900 in advertising and other selling expenses. (a) Under variable costing, what is Cullumber’s operating income?