PROBLEM 2 (16 Points): Columbia Computers manufactures nonunique computer systems for home and business use. The direct materials for the systems total $387 per unit, direct labor costs $120 per unit, and variable costs are $83 per unit. Total fixed overhead costs are $500,000 for the year. Variable selling costs are $22 per unit and total fixed selling costs total $800,000 for the year. Demand for computer systems has been high during the pandemic, so the company has been producing its maximum number of units each year: 10,000 units. The company had excess inventory from the prior year, and during the current year it sold 12,000 units. The sales price is $2,150 per unit. Management would like to see how its operating income looks during the current year and asks you to prepare operating income statements using both the variable-costing and absorption- costing formats. 1. Without crunching any numbers, will operating income be more under variable-costing or absorption-costing this year and why (2 points)?