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Vita Ade produced 12,000 cases of powsered drink mix and sold 11,000 cases in Apri 2018. The sules price was $25, varlable costs were $15 per case (\$10 manufscturing and $5 selling and administrative), and total fixod costs were $90,000 (\$72,000 manutacturing overhead and $18,000 selling and administrative). The compary had no beginning Finithed Gocds inventory Vita Ade calculated the coet per unit and the total cost of the 1,000 cases in Finished Goods Inventory as of April 30 using both the absorpton and variable costing methods. The caiculations are presented beiow: [Cick the ian to view the caloulations using the absorion and variable costing mothods) Read the reguiremionts Requirement 1. Which costing method produces the highest operating inoorne? Explain why. bost mothod produces the highest operating income. The primary roason for this is that are diavituted across the entre production nun as part of the unt cost Under the absorption costng method, of foced manutacturing costs are Under the variable costing method, this amourt is Reference Requirements 1. Which costing method produces the highest operating income? Explain why. 2. Which costing method produces the highest April 30 balance in Finished Goods Inventory? Explain why