Jorgansen Lighting, Incorporated, manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for internol monagement reports and absorption costing for externat reports to shareholders, creditors, and the government. The company has provided the following data: The company's fixed manufocturing overhead per unit was constant at $560 for all three years. 2. Assume in Year 4 that the company's variable costing net operating income was $260,000 and its absorption costing net operating income was $290,000. a. Old inventories increase or decrease during Year 4 ? Increase Decrease. Required information Increase Decrease b. How much fixed manufacturing overhead cost was deferred or released from inventory during Year 4