(Click the icon to view the cost data.) Calculate JM Toys' operating income under (a) variable costing, and (b) absorption costing. Explain why operating income differs under the two approaches. Operating income Absorption costing treats fixed manufacturing cost as a , while variable posting treats it as a JM Toys has units in ending inventory. Under absorption costing, these units have a fixed manufacturing 'Click the icon to view the cost data.) Calculate JM Toys' operating income under (a) variable costing, and (b) absorption costing. Explain why operating income differs under the two approaches. Operating income Now calculate dM Toys's operating income under (b) absorption costing. (If a box is not used in the table, leave the box empty; do not select a label or enter a zero.) Absorption costing treats fixed manufacturing cost as a while variable costing treats it as a JM Toys has urits in ending inventory. Under absorption costing, these units have a fixed manufacturing cost of 5 per unit, So the total fixed manufacturing cost in ending inventory under absorption costing is $. Since these costs are inventorled under costing. and not expensed as they would be under costing, operating income is under absorption costing by $