Dolphin Company manufactures two-person sailboats with a variable cost of $1,000. The sailboats sell for $1,750 each. Budgeted fixed manufacturing overhead for the most recent year was $11,000,000. Planned and actual production for the year were the same.

Required:

State whether income is higher under variable or absorption costing and the amount of the difference in reported opearting income under the two methods. Treat each condition as an independent case.

1.	Production	22,000	units
	Sales	25,000	units
2.	Production	10,600	units
	Sales	10,600	units
3.	Production	11,000	units
	Sales	9,800	units