Pandora Pillow Company's planned production for the year just ended was 10,000 units. This production level was achieved, but only 9,000 units were sold. Other data follow: The cost per unit remained the same in the current year as in the previous year. There were no work-in-process inventories at the beginning or end of the year. Required: 1. What would be Pandora Pillow Company's finished-goods inventory cost on December 31 under the variable-costing method? 2. Which costing method, absorption or variable costing, would show a higher operating income for the year? By what amount