Assume Stassen Company on January 1, 2018, decides to contract with another company to preassemble a large percentage of the components of its telescopes. The revised manufacturing cost structure during the 20182019 period is as follows: Variable manufacturing cost per unit produced:

Direct materials $ 285 Direct manufacturing labor 15 Manufacturing overhead 10 Total variable manufacturing cost per unit produced $ $310 Fixed manufacturing costs $390,000 Under the revised cost structure, a larger percentage of Stassens manufacturing costs are variable for units produced. The denominator level of production used to calculate budgeted fixed manufacturing cost per unit in 2018 and 2019 is 9,500 units. Summary information pertaining to absorption-costing operating income and variable-costing operating income with this revised cost structure are as follows:

2018 2019 Absorption-costing operating income $1,600,000 $1,760,000

Variable-costing operating income $1,480,000 $1,850,000 Difference $ 120,000 $ (90,000) Required: Assume the same preceding information, except that for 2018, the master-budget

capacity utilization is 10,000 units instead of 8,000. How would Stassens absorption- costing income for 2018 differ from the $1,500,000 shown previously? Show your

computations.