Analyzing Income under Absorption and Variable Costing

Variable manufacturing costs are $106 per unit, and fixed manufacturing costs are $126,000. Sales are estimated to be 4,500 units.

If an amount is zero, enter "0". Do not round interim calculations. Round final answer to nearest whole dollar.

a. How much would absorption costing income from operations differ between a plan to produce 4,500 units and a plan to produce 7,000 units? $

b. How much would variable costing income from operations differ between the two production plans? $