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Jorgansen Lighting, Incorporated, manufactures heavy$-$duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external reports. The company provided the following data:

Year $1$ Year $2$ Year $3$

Inventories

Beginning $($units$)210170200$

Ending $($units$)170200230$

Variable costing net operating income $ $300,000$ $ $279,000$ $ $250,000$

The company$$s fixed manufacturing overhead per unit was constant at $$550$ for all three years.