Tulsa, Inc., planned and actually manufactured 260,000 units of its single product in 2017, its first year of operation. Variable manufacturing cost was $17 per unit produced. Variable operating (nonmanufacturing) cost was $8 per unit sold. Planned and actual fixed manufacturing costs were $780,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $430,000. Tulsa sold 150,000 units of product at $40 per unit. Read the requirements. 1. Tulsa's 2017 operating income using absorption costing is (a) $1,370,000, (b) $1,040,000, (c) $1,470,000, (d) $1,800,000, or (e) none of these. Show supporting calculations. 2. Tulsa's 2017 operating income using variable costing is (a) $1,820,000, (b) $1,370,000, (c) $1,040,000, (d) $1,470,000, or (e) none of these. Show supporting calculations. Absorption costing Revenues $ 6,000,000 Cost of goods sold: Variable manufacturing costs Fixed operating costs 1200000 Allocated fixed manufacturing costs Deduct ending inventory Cost of goods available for sale Cost of goods sold Fixed manufacturing costs Variable operating costs Operating income