Osawa, Inc., planned and actually manufactured 240,000 units of its single product in 2020, its first year of operation. Variable manufacturing cost was $17 per unit produced. Variable operating (nonmanufacturing) cost was $12 per unit sold. Planned and actual fixed manufacturing costs were $720,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $360,000. Osawa sold 140,000 units of product at $37 per unit. Requirement 1. Osawa's 2020 operating income using absorption costing is (a) $340,000, (b) $40,000, (c) $400,000, (d) $700,000, or (e) none of these. Show supporting calculations. $ 5,520,000 Absorption costing Revenues Cost of goods sold: Beginning inventory Variable manufacturing costs Allocated fixed manufacturing costs Cost of goods available for sale Deduct ending inventory Cost of goods sold Gross margin Variable operating costs 3,780,000 720,000 4,500,000 (1,500,000) 3,000,000 2,520,000 840,000 350.000 Fixed operating costs Operating income Boston's 2020 operating income using absorption costing is A. $1,330,000 B. $1,090,000 C$1,440,000 D. $1,680,000 O E none of these Requirement 2. Boston's 2020 operating income using variable costing is (a) $1,810,000, (b) $1,330,000, (c) $1,090,000, (d) $1,440,000, or (e) none of these. Show supporting calculations. Begin by selecting the labels used in the variable costing calculation of operating income and enter the supporting amounts. Perform the calculations in this step, but select the correct operating income in the next step. (For amounts with a $0 balance, make sure to enter "o" in the appropriate cell.) Variable costing Revenues $ 5,520,000 Variable cost of goods sold: Beginning inventory 0 Variable manufacturing costs 3,780,000 Cost of goods available for sale 3,780,000 Deduct ending inventory (1,260,000) Variable cost of goods sold 840.000 Variable operating costs Contribution margin 2,160,000 Fixed manufacturing costs 720,000 350.000 Fixed operating costs 2,520,000 Operating income Requirements 1. Osawa's 2020 operating income using absorption costing is (a) $340,000, (b) $40,000, (c) $400,000, (d) $700,000, or (e) none of these. Show supporting calculations. 2. Osawa's 2020 operating income using variable costing is (a) $760,000, (b) $340,000, (c) $40,000, (d) $400,000, or (e) none of these. Show supporting calculations