In absorption costing, When units manufactured > units sold, 1. then inventory 2. the change in inventory is related to 1. Finished goods inventory increases 2. Reduction of fixed manufacturing overhead to beginning inventory 1. Finished goods inventory decreases 2. Allocation of fixed manufacturing overhead to ending inventory 1. Finished goods inventory increases 2. Allocation of variable manufacturing overhead to ending inventory 1. Finished goods inventory increases 2. Allocation of fixed manufacturing overhead to ending inventory C QUESTION 11 If more units are produced what happens to income from operations? Absorption - income will decrease Variable - income will stay the same Absorption - income will stay the same Variable - income will increase Absorption - income will stay the same Variable - income will decrease Absorption - income will increase Variable - income will stay the same