Fly Boy Company manufacturers fishing rods with a Variable manufacturing cost of $35. Budgeted (and actual) fixed man. overhead for the most recent year was $400,000. Budgeted(and actual) production was 25,000 units and sales were 20,000 units. Which of following statements was true.

Operating income is higher under absorption by $80000

Operating income is lower under absorption by $80000

Operating income is higher under absorption by $100000

Operating income is Lower under absorption by $100000

Operating income is the same under both variable and absorpton