During its first year of operations, The World Wrestling Federation produced $3,200$ replica championship

belts and sold $2,500$ replica championship belts. Variable manufacturing costs per unit were $$5.$ Total fixed

manufacturing overhead costs for the year were $$200,000.$ Which costing method $($variable or absorption$)$

will generate a higher net operating income for the company in the first year of operations? And by what

amount? The Answer is A$,$ I just need an explanation.

a$.$ Absorption costing NOI will be higher by $$43,750$

b$.$ Variable costing NOI will be lower by $$56,000$

c$.$ Variable costing NOI will be higher by $$43,750$

d$.$ Absorption costing NOI will be higher by $$56,000$

e$.$ There will be no difference between NOI under the two costing methods