Q 8.33: Two companies start out operations with no beginning inventory. Over the next three years Company M produces 50,000 units each year and has a sales pattern of 40,000 units in Year 1; 40,000 units in Year 2; and 70,000 units in Year 3. Company N produces 70,000 units in Year 1; 40,000 units in Year 2; and 40,000 units in Year 3. Their sales level over the three years is consistent at 50,000 units per year. If both companies use absorption costing, which companyies) will have deferred fixed manufacturing costs at the end of Year 3? A Company M but not Company N B Company N but not Company M C both Company M and Company N D neither Company M nor Company N