Variable and Absorption Costing

Chandler Company sells its product for $$120$ per unit. Variable manufacturing costs per unit are $$49,$ and fixed

manufacturing costs at the normal operating level of $12,000$ units are $$240,000.$ Variable selling expenses are $$21$

per unit sold. Fixed administrative expenses total $$104,000.$ Chandler had no beginning inventory for the year.

During the year, the company produced $12,000$ units and sold $9,000.$ Would net income for Chandler Company 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.