URGENT

Arm Pros Inc. calculates income under absorption costing. The company provides bonuses to managers based on the operating income of the division. In 2021, the Muscle division has the following financial results:

Sales (55,000 units)		5500000
Cost of Goods Sold
Opening Inventory		0
Cost of Goods Manufactured (70,000 units)
Variable Costs		2000000
Fixed Costs		2200000
		4200000
Ending Inventory		-900000
COGS		3300000
Gross Margin		2200000
Selling and Admin Expenses
Variable		600000
Fixed		900000
		1500000
Operating Income		700000

The old manager for the Muscle division left in early 2021. A new manager was hired in 2022. The new manager produced 65,000 units and sold 68,000 units in 2022.
REQUIRED
A) Calculate the operating income for 2022 using absorption costing. Use an income statement to show your work.
B) Calculate the operating income for 2022 using variable costing. Do not use an income statement as part of your calculation.