Toby Company produces and sells a specialized product for $80 per unit. In the first month of operation, 3,000 units were produced and 2,250 units were sold. The company did not have any material or work in process inventory at the end of the month. Actual fixed costs are the same as the amount budgeted for the month. Fixed manufacturing cost is allocated to products based on units produced. Other information for the month includes:

Variable manufacturing costs $38 per unit

Variable marketing costs $ 2 per unit

Fixed manufacturing costs $60,000 per month

Administrative expenses, all fixed $12,000 per month

1. What is operating income under absorption costing?
2. What is operating income under variable costing?