The management at Toyota Inc. is planning to have a management meeting during the coming week. The CEO has asked the CFO to present the financials for the meeting. You as a business analyst have to prepare the financial results. Toyota, Inc. planned and actually manufactured 200,000 units of its single product the Camry in its first year of operations. Variable manufacturing costs were $30 per unit of product. Planned and actual fixed manufacturing costs were $600,000, and selling and administrative costs totaled $400,000. Toyota sold 120,000 units of product at a selling price of $40 per unit. Calculate Osawa's operating income for the year using variable costing.

Calculate Osawa's operating income for the year using Absorption costing.