Last month, Toro Tools produced 80,000 wheelbarrows and sold 75,000 at a price of $20 each.. Manufacturing costs consisted of direct materials of $200,000, direct labor of $320,000, variable manufacturing overhead of $160,000, and fixed manufacturing overhead of $400,000. General and administrative fixed costs totaled $60,000.

a.Calculate Toro Tools net income using full costing.

b.Calculate Toro Tools net income using variable costing.