Aspen Surgical Supply Services provides prepared surgical trays to hospitals. Each year, they have product-related overhead costs of $500,000. The average cost per tray for variable components is $600. In 1993, they prepared 10,000 trays and delivered 9,000 to customers. In 1994, they expect to prepare 14,000 trays and deliver 9,000 to customers. What is the cost of goods sold expense charged to 1993 and 1994 under absorption costing? Under variable costing?

Are they more profitable in 1994, assuming their selling prices have remained the same?