Bianca Bicycle Company manufactures mountain bikes with a variable cost of $1,200. The bicycles sell for $1,950 each. Budgeted fixed manufacturing overhead for the most recent year was $11,200,000. 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	22,200	units
	Sales	25,400	units
2.	Production	11,000	units
	Sales	11,000	units
3.	Production	11,300	units
	Sales	9,900	units