21 2.53 . Verdon Corporation planned to be in operation for three years: 2018, 2019. and 2020. In 2018, the company produced 60,000 units of its single product. It had no sales but incurred $240,000 in variable manufacturing costs and $80,000 in fixed manufacturing costs. In 2019. the company incurred no manufacturing costs (i... production volume was zero) but sold half of the inventory it produced in 2018 for $200,000. In 2020, the company incurred no manufacturing costs, sold the remainder of its inventory for $240.000, and went out of business. Selling and administrative expenses were fixed and totaled $40,000 each year. What was operating income under variable costing in 2020? $40,000 O $80,000 $120,000 ($40,000) O None of the above 2.5 D 22 TRUE or FALSE? When the unit level of inventory decreases during an accounting period, operating income is lower under variable costing than absorption costing. O True O False 23 2.59 In its most recently completed period, a company that produces a single product earned operating income pf $475,000 under variable costing and operating income of $505,000 under absorption costing. Total fixed manufacturing overhead was $48,000 for the period and 8.000 units were produced during the period. This was the first year of operations for the company. Between the beginning and end of the year, the inventory level at this company: O decreased by 5,000 units O increased by 5,000 units O decreased by 30,000 units o increased by 30,000 units None of the above