Company A sells a single product for $20 per unit. Additional data for the company's first month of operations are as follows: Unit variable manufacturing costs $14.50 Total fixed manufacturing costs $14.000 Unit variable selling and administrative expenses $2.00 Total fixed selling and administrative expenses $6,000 During the month, Company A produced 8,000 units. At month end, 500 units remained in ending inventory. Which of the following statements is true? O Absorption costing produces operating income that is $875 higher than variable costing. O Absorption costing produces operating income that is $875 lower than variable costing. O Absorption costing produces operating income that is $13, 125 higher than variable costing. O Absorption costing produces operating income that is $13,125 lower than variable costing