i need help answering under the blank boxes of the operating income

Original Production Original Production Additional 10,000 Additional 10,000 Level-Absorption Level-Variable Units-Absorption Units-Variable $341,000 * O $341,000 2. What is the change in operating income from producing 10,000 additional units under absorption costing? $ 68,000 3. What is the change in operating income from producing 10,000 additional units under variable costing? 4. What would be your recommendation to the production manager? a. Do not produce the extra 10,000 units. The increase in operating income under absorption costing is due to fixed manu costs being held in inventory, and the additional inventory will lead to higher handling, storage, financing, and obsolescend b. Produce the extra 10,000 units. Operating income will be increased, and the production manager will receive praise for higher profits. C. Do not produce the extra 10,000 units. Operating income does not change under absorption costing when the additiona produced. d. Produce the extra 10,000 units. It's always a good idea to have extra units on hand and keep the factory operating at ca even if all the units are not sold. Saxon, Inc. Variable Costing Inconie Statement For the Year Ended December 31 Sales $1,360,000 Variable cost of goods sold: Variable cost of goods manufactured Ending inventory $600,000 (90,000) Total variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin (510,000) $850,000 (255,000) $595,000 Fixed costs: $240,000 Fixed manufacturing costs Fixed selling and administrative expenses 65,000 Total fixed costs (305,000) Operating income $290,000 Method Comparison Method Comparison Review the income statements on the Absorption Statement and variable Statement, then complete th company's sales price per unit is $80, and the number of units in ending inventory is 3,000. There was Item Amount Number of units sold 17,000 Variable sales and administrative cost per unit $ 15 Number of units manufactured 20,000 Variable cost of goods manufactured per unit Fixed manufacturing cost per unit heed DC