Franz began business at the start of this year and had the following costs: variable manufacturing cost per unit, $9; fixed manufacturing costs, $60,000; variable selling and administrative costs per unit, $2; and fixed selling and administrative costs, $266,000. The company sells its units for $49 each. Additional data follow.

Planned production in units	10,000
Actual production in units	10,000
Number of units sold	9,500

There were no variances.

The income (loss) under absorption costing is:

None of these.

$38,000.

$36,000.

$35,000.

$(8,500).

The income (loss) under variable costing is:

$35,000.

some other amount.

$(8,500).

$38,000.

$36,000.