Bianca Bicycle Company manufactures mountain bikes with a variable cost of $1,900. The bicycles sell for $2,650 each. Budgeted fixed manufacturing overhead for the most recent year was $11,900,000. 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	22,900	units
	Sales	26,800	units
2.	Production	12,400	units
	Sales	12,400	units
3.	Production	12,350	units
	Sales	10,250	units