Reeses Tot Toy Boxes uses variable costing to manage its internal operations. The following data relate to the companys first year of operation, when 25,000 units were produced and 21,000 units were sold. Variable cost per unit Direct material $50 Direct labor $30 Variable overhead $14 Variable selling costs $12 Fixed Costs Selling and administrative $750,000 Manufacturing $500,000 How much higher (or lower) would the companys first-year net income have been if absorption costing had been used rather than variable costing? Show computations