Favaz began business at the start of this year and had the following costs: variable manufacturing cost per unit, $$5$; fixed manufacturing costs, $$60\mathrm{.}000$; variable selling and administrative costs per unit, $$3$; and fixed selling and administrative costs, $$80,000.$ The

company sells its units for $$45$ each. Additional data follow.

Planned production in units $10,000$

Actual production in units $10,000$

Number of units sold $7,000$

There were no variances.

a$.$ The income $($loss$)$ under absorption costing is:

b$.$ The income $($loss$)$ under variable costing is: