2. When units produced are greater than units sold a. Operating income is less under absorption costing than variable costing b. Operating income is greater under absorption costing than variable costing C. Operating income is the same under absorption costing and variable costing d. Inventory levels go down 3. Davidson Equipment records show $58,500 in total cost when it manufactured 9000 chairs. Total fixed costs are $36,000. What is the variable cost per unit when Davidson manufactures 10,000 chairs? a. $4.00 b. $6.50 c. $7.00 d. $2.50