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

Direct materials $$24$

Direct labor $$14$

Variable overhead $$16$

Fixed overhead $$5$

The company also incurs $$2$ per tree in variable selling and administrative costs and $$3,000$ in fixed marketing costs.

At the beginning of the year, thecompany had $830$ trees in the beginning Finished Goods Inventory. The company produced $2,050$ trees during the year. Sales totaled $1,500$ trees at a price of $$103$ 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?