Houston, Inc., manufactured 240,000 units of its single product in 2019, its first year of operations. Variable manufacturing costs totaled $20 per unit produced. Variable selling costs totaled$8 per unit sold. Fixed manufacturing overhead costs totaled $720,000, while fixed selling costs totaled $360,000. Houston sold 237,000 units of its product. The company uses the number of units produced as its cost driver to allocate fixed manufacturing overhead.

Calculate the following: Net income reported under absorption costing - Net income reported under variable costing.