The Colin Division of Blossom Company sells its product for $$34$ per unit. Variable costs per unit include: manufacturing, $$10$; and

selling and administrative, $$3.$ Fixed costs are: $$240000$ manufacturing overhead, and $$50000$ selling and administrative. There was

no beginning inventory. Expected sales for next year are $40000$ units. Jason Allen, the manager of the Colin Division, is under pressure

to improve the performance of the Division. As part of the planning process, he has to decide whether to produce $40000$ units or

$50000$ units next year.

What would the net income be under absorption costing for each alternative?

$)$