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Exercise $7-3($Algo$)$ Reconciliation of Absorption and Variable Costing Net Operating Incomes $[$LO$7-3]$

$[$The following information applies to the questions displayed below.$]$

Jorgansen Lighting, Incorporated, manufactures heavy$-$duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external reports. The company provided the following data:

Exercise $7-3($Algo$)$ Part $1$

Required:

$1.$ Calculate each year's absorption costing net operating income.

Note: Enter any losses or deductions as a negative value.