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

Units produced this year	44,000 units
Units sold this year	26,400 units
Direct materials	$28 per unit
Direct labor	$30 per unit
Variable overhead	$132,000 in total
Fixed overhead	$220,000 in total

1. Given Advanced Company's data, and the knowledge that the product is sold for $88 per unit and operating expenses are $390,000, compute the net income under absorption costing.

a. $88,000

b. $102,800

c. $375,760

d. $190,800

e. $322,800

2. Given Advanced Company's data, and the knowledge that the product is sold for $88 per unit and operating expenses are $390,000, compute the net income under variable costing.

a. $88,000

b. $102,800

c. $375,760

d. $190,800

e. $398,800