$\frac{0}{1},$vdots

Young & King Industries makes artificial Christmas trees. The unit costs for producing a tree are:

Direct materials $$27$

Direct labor $$14$

Variable overhead $$16$

Fixed overhead $,$$$7$

The company also incurs $$1$ per tree in variable selling and administrative costs and $$3,700$ in fixed marketing costs.

At the beginning of the year, the company had $820$ trees in the beginning Finished Goods Inventory. The company produced $2,230$ trees during the year. Sales totaled $1,700$ trees at a price of $$101$ per tree.

$($a$)$ Based on absorption costing, what was the company's operating income for the year?

Company's operating income $

$($b$)$ Based on variable costing, what was the company's operating income for the year?

Company's operating income $