Advanced Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year.

Units produced this year	36,000 units
Units sold this year	21,600 units
Direct materials	$20 per unit
Direct labor	$22 per unit
Variable overhead	$108,000 in total
Fixed overhead	$180,000 in total

1. Given Advanced Company's data, and the knowledge that the product is sold for $72 per unit and operating expenses are $310,000, compute the net income under variable costing.

2. Given Advanced Company's data, and the knowledge that the product is sold for $72 per unit and operating expenses are $310,000, compute the net income under absorption costing.