Larkspur Printing, Inc., prints and binds encyclopedias. The following information was found in the accounting records:

Sales price per unit. $101

Direct materials per unit $50

Direct labor per unit $14

Variable overhead per unit $10

Fixed overhead per unit. $21

Fixed selling costs. $53,900

Variable selling costs. $153,100

Beginning inventory 0

Units produced 102,810

Units sold 91,930

a. Under absorption costing, what is Larkspurs operating income?

b. Under variable costing, what is Larkspurs ending Finished Goods Inventory balance?