Bacon Mfg. has provided the following information.

Units produced  in 2020 is1,000 and in 2021 is 1,000 Units. sold in 2020 is 825 and in 2021 is 875. Selling price per unit in 2020 is  $20.00  and in 2021 is $20.00 .Total Manufacturing Costs: Variable in 2020 is  2,000 and in 2021 is  2,000. Fixed  in 2020 is 3,000 and in 2021 is  3,000. Total Selling and Administration Variable  in 2020 is 825 and in 2021 is 875. Fixed  in 2020 and 2021 is 3,000 .

What is the difference in operating income between absorption and variable costing for 2021? 

a. Absorption income is $1,250 greater than variable income. 

b. Absorption income is $1,250 less than variable income. 

c. Absorption income is $375 greater than variable income. 

d. Absorption income is $2,125 greater than variable income

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