White & Harris Industries makes artificial Christmas trees.

The unit costs for producing a tree are:

Direct materials $26

Direct labor $14

Variable overhead $16

Fixed overhead $4

The company also incurs $1 per tree in variable selling and administrative costs and $4,300 in fixed marketing costs. At the beginning of the year, the company had 870 trees in the beginning Finished Goods Inventory. The company produced 2,050 trees during the year. Sales totaled 1,600 trees at a price of $103 per tree.

(a) Based on absorption costing, what was the companys operating income for the year? Companys operating income $enter the companys operating income in dollars

(b) Based on variable costing, what was the companys operating income for the year? Companys operating income $enter the companys operating income in dollars

(c) Assume that in the following year the company produced 2,050 trees and sold 2,820. Based on absorption costing, what was the operating income for that year? Based on variable costing, what was the operating income for that year?

Absorption Costing $enter a dollar amount $enter a dollar amount

Variable Costing Operating income $enter a dollar amount $enter a dollar amount