Denver, Inc., planned and actually manufactured 190,000 units of its single product in 2020, its first year of operation. Variable manufacturing cost was $19 per unit produced. Variable operating (nonmanufacturing) cost was $11 per unit sold. Planned and actual fixed manufacturing costs were $570,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $420,000. Denver sold 130,000 units of product at $40 per unit. 1. Denver's operating income using absorption costing is (a) $490,000 , (b) $310,000 , (c) $730,000, (d) $910,000 , or (e) none of these. Show supporting calculations. 2. Denver's operating income using variable costing is (a) $880,000, (b) $490,000, (c) $310,000 , (d) $730,000 , or (e) none of these. Show supporting calculations.