Borques Company produces and sells wooden pallets that are used for moving and stacking materials. The operating costs for the past year were as follows:

Variable costs per unit:
Direct materials	$2.85
Direct labor	$1.92
Variable overhead	$1.60
Variable selling	$0.90
Fixed costs per year:
Fixed overhead	$180,000
Selling and administrative	$ 96,000

During the year, Borques produced 200,000 wooden pallets and sold 204,300 at $9 each. Borques had 8,200 pallets in beginning finished goods inventory; costs have not changed from last year to this year. An actual costing system is used for product costing.

4.Calculate variable-costing operating income. __________________________

5.Suppose that Borques Company had sold 196,700 pallets during the year. What would absorption-costing operating income have been? Variable-costing operating income?

Absorption costing income	$
Variable costing income	$