Assume the following information for a company that produced and sold 10,000 units during Year 1 It also produced 15,000 units and sold 12,000 units during Year 2, while producing 12,000 units and selling 14,000 units in year 3 Per Year Selling price Direct materials Direct labor Variable manufacturing overhead Sales commission Fixed manufacturing overhead Fixed selling and administrative expense Per Unit $240 $ 85 $ 60 $ 10 $11 $450,000 $250,000 If the company uses a LIFO Inventory flow assumption (LIFO means last-in first-out and assumes the newest units in Inventory are sold first), what is the net operating income in Year 3 under absorption costing? Multiple Choice $261,000 $276,000 $267.000 $283,500 Assume the following Information for a company that produced 10,000 units and sold 8,000 units during its first year of operations and produced 8,000 units and sold 10,000 units during its second year of operations Per Year Selling price Direct materials Direct labor Variable manufacturing overhead Sales commission Fixed selling and administrative expense Fixed manufacturing overhead Per Unit $200 $ 72 $ 50 $ 10 $ 8 $110,000 $300,000 Using absorption costing, what is the net operating income for the second year of operations? Multiple Choice $130,000 $150,000 $160,000 $180,000 Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations: Per Year Selling price Direct materials Direct labor Variable manufacturing overhead Sales Commission Fixed manufacturing overhead Per Unit $200 $ 78 $ 5e $ 10 $8 $293,000 Which of the following choices explains the relationship between the absorption costing net operating income and the variable costing net operating income? Multiple Choice The absorption costing net operating income will be lower than the variable costing net operating income by $101,300 The absorption costing net operating income will be lower than the variable costing net operating Income by $29.300. The absorption costing net operating income will be higher than the variable costing net operating income by $29,300. The absorption costing net operating income will be higher than the variable costing net operating Income by $101,300