Jupiter Corporation incurred fixed manufacturing costs of $19,000 during 2020. Other information for 2020 includes:

The budgeted denominator level is 2,100 units.

Units produced total 2,400 units.

Units sold total 1,900 units.

Variable cost per unit is $4

Beginning inventory is zero.

The fixed manufacturing cost rate is based on the budgeted denominator level.

The operating income using variable costing will be ________ as compared to the operating income under absorption costing. (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.)

A.

higher by $4,525

B.

lower by $4,525

C.

higher by $2,715

D.

lower by $2,715