Powell Inc., planned and actually manufactured 200,000 units of its single product in 2020, 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 $400,000. Powell sold 120,000 units of product at $40 per unit

1. Compute Powell's 2020 operating income using absorption costing.
2. Compute Powell's 2020 operating income using variable costing