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 Which of the following choices is true with respect to absorption costing Income in Year 3? Multiple Choice If the company uses a FIFO Inventory flow assumption (FIFO means first-in first-out and assumes the oldest units in inventory are sold first). Its net operating income will be higher than if it used a LIFO inventory flow assumption (LIFO means last-in first-out and assumes the oldest units in Inventory are sold first) If the company uses a FIFO Inventory flow assumption (FIFO means first in first-out and assumes the oldest units in Inventory are sold first), its net operating income will be the same as if it used a LIFO inventory flow assumption (LIFO means last-in first-out and assumes the oldest units in Inventory are sold first) If the company uses a FIFO inventory flow assumption (FIFO means first-n first-out and assumes the oldest units in Inventory are sold first), its net operating Income may be higher or lower than if it used a LIFO Inventory flow assumption (LIFO means last-in first-out and assumes the oldest units in Inventory are sold first) depending on the sales commission per unit