In Tesla's first year of business, Tesla produced 4,000 cars and sold 3,600 cars. In Year 2, they made 10,000 cars and sold 10,200 cars. If Tesla uses variable costing, in Year 2 O its operating income for Year 2 will be higher than under absorption costing. O its value of ending Finished Goods Inventory reported in the balance sheet will be higher than under absorption costing its operating income will be the same as under absorption costing O its operating income in Year 2 will be lower than under absorption costing Columbo, Inc. has the following cost data: Direct Materials $20 per unit Direct Labor $40 per unit Variable Factory Overhead $5 per unit Fixed Factory Overhead $500,000 for the period Variable Selling & Administrative $15 per unit Fixed Selling & Administrative $60,000 for the period Evaluate the following statements: 1. If Columbo uses absorption costing, produces 20,000 units and sells 5,000 units, the product cost is $165 per unit. 2. If Columbo uses absorption costing, produces 10,000 units and sells 4.000 units, the product cost is $115 per unit. 3. If Columbo uses variable costing, produces 50,000 units and sells 25,000 units, the product cost is $80 per unit. O All of the Statements are true O Only Statement #1 is true Both Statement #1 and #2 are true O Both Statement #1 and #3 are true o Only Statement #3 is true O Both Statement #2 and #3 are true Only Statement #2 is true