Last year Fabre Company produced 20000 units and sold 18000 units at a price o

Last year Fabre Company produced 20000 units and sold 18000 units at a price of $12. Costs for last year were as follows:

Direct Materials: $25000

Direct Labor: 35000

Variable factory overhead: 12000

Fixed Factory Overhead: 37000

Fixed Selling Expense: 7500

Variable Selling Expense: 9000

Fixed Administrative Expense: 15500

Fixed facotry overhead is applies based on expected production. Last year Fabre expected to produce 20000 units.

1) Assuming that begining inventory was zero what is the value of ending inventory under absorbtion costing?

2) Assuming begining inventory was zero what is the value of ending inventory under variable costing?

3) What is operatiing income for last year under absoption costing?

4) What is operating income for last year under variable costing?