Jorgansen Lighting, Inc., manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external reports to shareholders, creditors, and the government. The company has provided the following data: Year 1 Year 2 Year 3 Inventories 184 239 Variable costing net operating income $294,000 $271,700 $258,700 Beginning (units) Ending (units) 218 151 151 184 The company's fixed manufacturing overhead per unit was constant at $560 for all three years