Waters, Inc. reports the following information:

$\backslash$table$[[$Units produced,$2,500$ units$],[$Units sold,$2,000$ units$],[$Sales price,$\backslash$table$[[$per$],[$$$200$ unit$]]],[$Direct materials,$\backslash$table$[[$per$],[$$$40$ unit$]]],[$Direct labor,$],[\backslash$table$[[$Variable$],[$manufacturing$],[$overhead$]],\backslash$table$[[$per$],[$$$20$ unit$]]],[\backslash$table$[[$Fixed$],[$manufacturing$],[$overhead$]],\backslash$table$[[$per$],[$$$90,000$ year$]]],[\backslash$table$[[$Variable selling$],[$and$],[$administrative$],[$costs$]],\backslash$table$[[$per$],[$$$15$ unit$]]],[\backslash$table$[[$Fixed selling$],[$and$],[$administrative$],[$costs$]],\backslash$table$[[$per$],[$$$75,000$ year$]]]]$

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

Requirements:

Calculate the operating income using absorption costing and variable costing. Show all calculations.