Company A sells a single product for $20 per unit. Additional data for the company's first month of operations are as follows: During the month, Company A produced 8,000 units. At month end, 500 units remained in enditg inventory. Which of the following statements is TRUE? Absorption costing produces operating income that is $875 higher than variable costing. Absorption costing produces operating income that is $13,125 higher than variable costing. Absorption costing produces operating income that is $13,125 lower than variable costing. Absorption costing produces operating income that is $875 lower than variable costing. Company A sells a single product for $20 per unit. Additional data for the company's first month of operations are as follows: During the month, Company A produced 8,000 units. At month end, 500 units remained in enditg inventory. Which of the following statements is TRUE? Absorption costing produces operating income that is $875 higher than variable costing. Absorption costing produces operating income that is $13,125 higher than variable costing. Absorption costing produces operating income that is $13,125 lower than variable costing. Absorption costing produces operating income that is $875 lower than variable costing