Last year, Clayton Company's variable production costs totalled 8,000 and its fixed manufacturing overhead costs totalled 4,800. The company produced 4,000 units during the year and sold 3,600 units. Assuming no units in the beginning inventory

under variable costing, the units in ending inventory will be costed at 3.20 each.

the operating profit under absorption costing for the year will be 480 lower than operating profit under variable costing.

the operating profit under absorption costing for the year will be 800 lower than operating profit under variable costing.

the ending inventory under variable costing will be 480 lower than the ending inventory under absorption costing.