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Variable Costing-Production Exceeds Sales Fixed manufacturing costs are $38 per unit, and variable manufacturing costs are $114 per unit. Production was 110,000 units, while sales were 105,600 a. Determine whether variable costing operating income is less than or greater than absorption costing operating income. Variable costing operating income is greater than absorption costing. b. Determine the difference in variable costing and absorption costing operating income