Variable and Absorption Costing

Chandler Company sells its product for $$100$ per unit. Variable manufacturing costs per unit are $$40,$ and fixed manufacturing costs at the normal operating level of $10,000$ units are $$240,000.$ Variable selling expenses are $$16$ per unit sold. Fixed administrative expenses total $$104,000.$ Chandler had no beginning inventory in Year $1.$ During the year, the company produced $10,000$ units and sold $8,000.$ Would net income for Chandler Company in Year $1$ be higher if calculated using variable costing or using absorption costing?

Calculate reported income using each method.

Do not use negative signs with any answers.

$\backslash$table$[[$Absorption Costing Income Statement$],[$Sales$,,],[$Cost of Goods Sold:,,$],[$Beginning Inventory,,$],[$Variable Costs,,$],[$Fixed Costs,,$],[$Less: Ending Inventory,,$],[$Cost of Goods Sold,,$],[,,],[$Administrative expense,,$],[$Net Income,,$]]$