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Indigo Inc. started operations in January 2025. The company produces and sells cabinets for $5000 each. The following information pertains to the cost and sales

Indigo Inc. started operations in January 2025. The company produces and sells cabinets for $5000 each. The following information pertains to the cost and sales of the cabinets each year: Variable manufacturing costs $2500 per unit Variable operating costs $65 per unit Fixed manufacturing costs $27000 Fixed operating costs $12400 The company produced 24 units per year for 2025, 2026, and 2027. The company sold 21 units in 2025, 19 units in 2026, and 25 units in 2027. It reported no volume variances for the three-year period. For the three years, 2025 - 2027, O absorption costing operating income exceeded variable costing operating income by $7875. O variable costing operating income exceeded absorption costing operating income by $7875. the operating income for absorption costing equaled operating income for variable costing. the operating income for absorption costing may be greater than, equal to or less than operating income under variable costing

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