Bianca Bicycle Company manufactures mountain bikes with a variable cost of $2,800. The bicycles sell for $3,550 each. Budgeted fixed manufacturing overhead for the most recent year was $12,800,000. Planned and actual production for the year were the same. Required: State whether income is higher under variable or absorption costing and the amount of the difference in reported opearting income under the two methods. Treat each condition as an independent case. (Round intermediate calculations to 2 decimal places.) 1. Production 23,800 units Sales 28,600 units 14,200 units 14,200 units 13,700 units 10,700 units 2. Production Sales 3. Production Sales Income Higher Under (Method) Amount of Difference 1. 2. 3