1.)Fixed costs are $50 per unit and variable costs are $125 per unit. Production was 130,000 units, while sales were 125,000 units.

a. Determine whether variable cost income from operations is less than or greater than absorption costing income from operations.

greater or lower

b. Determine the difference in variable costing and absorption costing income from operations.

$

2.)The beginning inventory is 3,000 units. All of the units manufactured during the period and 3,000 units of the beginning inventory were sold. The beginning inventory fixed costs are $25 per unit, and variable costs are $55 per unit.

a. Determine whether variable costing income from operations is less than or greater than absorption costing income from operations.

greater or lower

b. Determine the difference in variable costing and absorption income from operations.

$