Entel Corporation creates an accounting computer program. This year, Entel Corporation produced 20,000 units of its program and sold 22,000 units. Each unit sells for $250. Selected operational and financial data are as follows:

Variable costs per unit: Direct Materials: $15.00 Direct Labor: $40.00 Manufacturing Overhead: $5.00 Selling and Administrative: $2.00

Fixed Costs per Unit: Manufacturing Overhead: $200,000 Selling and Administrative: $150,000

Calculate Entel's net operating income, using absorption costing.

Will operating income be higher or lower if calculated with variable costing? By how much?