Sarah Alten, CEO of Blossom Industries, Is concerned about the recent volatility in the company's operating income. She belleves that since the number of units sold has been fairly stable over the past three years that operating income also should have been stable. Sarah asked Jason Young Blossom's inventory manager, to help her understand the issue, Jason reviewed the company's records and compiled the following changes to Finished Goods Inventory (in units) for the years 2019, 2020 and 2021 Year 2019 2020 2021 2021 Beginning inventory 1.000 2.000 500 Production 40.000 38.000 40,000 Sales (39.000) (39.500) (39.500) HTUCILICON 900 30,00 40.000 Sales (39,000) (39,500) (39,500) Ending Inventory 2,000 500 1,000 Jason also gathered the 2019 income statements prepared using absorption costing and variable costing, which follow, Income Statement-Absorption Costing Sales $ 4,290,000 Cost of goods sold (91.000) Units in beginning inventory Units sold from current year production (3.458,000) Total cost of goods sold (3.549,000) Gross margin 741,000 Selling expense 1605.000 Selling expense (605,000) Operating Income $ 136,000 Income Statement-Variable Costing Sales $ 4,290,000 Variable production expenses (2,067,000) Variable selling expenses (234,000) Contribution margin 1,989.000 Fixed manufacturing expenses (1,520,000) Fixed selling expenses (371,000) Operating income 98,000 Income Statement-Absorption Costing 2020 2021 Sales $ Cost of goods sold Gross margin Fixed selling costs Variable costs - selling Operating income Income Statement-Variable Costing 2020 2021 Sales $ Variable costs-selling Variable costs-production Contribution margin Fixed manufacturing costs Fixed selling costs Operating income