ABC produces sporting equipment. Below are condensed results for the first two years of operation. ABC has a December $31$ year$-$end.

$\backslash$table$[[$Year $1$:$,],[25,000,$Units Produced$],[18,000,$Units Sold$],[$Year $2,$ the results were exactly reversed:,$],[18,000,$Units Produced$],[25,000,$Units Sold$],[$Each year the following unit prices were the same:,$],[$$$100,$Selling Price$],[$$$40,$Variable Manufacturing Costs$],[$$$8,$Variable Selling Costs$],[$$$200,000,$Fixed Administrative Expenses$]]$

Instructions

A$.$ Calculate net income under variable costing for each year.

B$.$ Calculate net income under absorption costing for each year.

C$.$ Reconcile the differences each year in income from operations under the two costing approaches.