Diego Company manufactures one product that is sold for $80 per unit. The following information pertains to the company's first year of operations in which it produced 40,000 units and sold 35,000 units. What would have been the company's variable costing net operating income (loss) if it had produced and sold 35,000 inits? 2-a. In year 4, the company's variable costing operating income was $253,200 and its absorption costing operating income was $226,700. Did inventories increase or decrease during year 4 ? increase Decrease 2-b. How much fixed manufacturing overhead cost was deferred or released from inventory during year 4