1. Which of the following statements is true? Absorption costing income statements report variable and fixed selling and administrative expenses separately. Absorption costing income statements treat fixed manufacturing overhead as a period expense. O Absorption costing income statements report the same net operating income as variable costing income statements. O Absorption costing income statements compute a gross margin. 2. Which of the following statements is true? O Variable costing income statements report variable and fixed selling and administrative expenses separately. Variable costing income statements treat fixed manufacturing overhead as a product cost. O Variable costing income statements report higher net operating income than absorption costing income statements. O Variable costing income statements compute a gross margin.