Calculate the below to the nearest dollar:

11) If you prepared an absorption costing income statement, Operating Income would be _____.

1) If you prepared a variable costing income statement Operating Income would be (higher, lower, same)?

2) If you prepared a variable costing income statement Operating Income differ from your answer in 11) above by how

much?

Baxtell Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: $ Variable costs per unit Manufacturing: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per year Fixed manufacturing overhead Fixed selling and administrative expense 30 10 4 8 305,100 199,500 During the year, the company produced 33.900 units and sold 28,500 units. The selling price of the company's product is 572 per unit