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Acme Company produces and sells widgets. Acme's per - unit selling price, per - unit variabie costs and total fixed costs are constant from year

Acme Company produces and sells widgets. Acme's per-unit selling price, per-unit variabie costs and total fixed costs are constant from year-to-year. Acme's unit sales are also constant from year-to-year, but the number of units that Acme produces fluctuates from year-to-year. Acme's annual operating income computed using variable costing will:
Fluctuate in direct proportion to changes in production.
Fluctuate inversely with changes in production.
Remain constant.
Always be greater than its annual operating income computed using absorption costing.
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