Osawa, Inc., planned and actually manufactured 300,000 units of its single product in 2022, its first year of operation. Variable manufacturing cost was $20 per unit produced. Variable operating (nonmanufacturing) cost was $10 per unit sold. Planned and actual fixed manufacturing costs were $600,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $300,000. Osawa sold 120,000 units of product at $40 per unit.

A) Compute Osawas 2022 operating income using absorption costing.

B) Compute Osawas 2022 operating income using variable costing.