Ashley Corporation manufactures furniture items. In the current year they produced 800,000 dining sets and sold 780,000 dining sets. What would have happened to net operating income in the current year under the following costing methods if Ashley had produced 20,000 more dining sets? (Assume that Ashley has both variable and fixed production costs.

Variable costing Absorption costing O A. Increase Increase O B. No Effect Decrease O C. No Effect No Effect O D. No Effect Increase