Featured Exercise (Relates to Part One of the chapter) The following information is for Carthage Manufacturing Company's first year of operations: To better focus on concepts, this exercise assumes actual costs are equal to budgeted costs. Assume the company uses variable costing: a. Compute the cost of ending finished goods inventory. b. Compute operating income. Assume the company uses absorption costing and the denominator level is 70,000 units per year: c. Compute the cost of ending finished goods inventory. d. Compute the production-volume variance. e. Compute operating income