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Please provide an answer with explanation Flavor, Corp. had the following production/sales levels for its first four years of business: Year 1 Year 2 Year

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Flavor, Corp. had the following production/sales levels for its first four years of business: Year 1 Year 2 Year 3 Year 4 Production in units 8,000 10,000 9,000 5,000 Sales in units 8,000 8,000 8,000 8,000 Selling price per unit ($15), variable cost per unit ($10), and fixed manufacturing overhead ($35,000) were the same each year. Flavor uses FIFO. Which of the following statements is correct?O Variable costing and absorption costing will produce a different profit each year. O Under variable costing, profit in Year 2 would be higher than any other year. O Under absorption costing, profit in Year 4 would be lower than any other year. O Variable costing profit would exceed absorption costing profit in Year 2. O Ending inventory is highest under both variable costing and absorption costing in Year 2. O Cumulative profit for Years 1-4 will be higher under absorption costing than variable costing

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