Calculate the operating income using absorption costing and variable costing.

Waters, Inc. reports the following information:

Units produced

$2,500$

units

Units sold

$2,000$

units

Sales price

$$200$

per unit

Direct materials

$$40$

per unit

Direct labor

$$25$

per unit

Variable manufacturing overhead

$$20$

per unit

Fixed manufacturing overhead

$$90,000$

per year

Variable selling and administrative costs

$$15$

per unit

Fixed selling and administrative costs

$$75,000$

per year

Assume that the production costs and sales prices were the same in the previous year. Assume no beginning inventories.