The Company is concerned about controlling costs given certain factors. For example, the state of Washington now levies a new sugar tax on the production cost per unit sold of flavored (non-cola) beverages (e.g, Snapple). Also, for the highly competitive specialty coffee market segment (e.g., Keurig), the Company now uses gross margin per unit to evaluate its managers. 3. (2 points) All else held constant, what would be the impact of the following decisions on CURRENT OPERATING INCOME - increase, decrease, or stay the same? Briefly explain why the Company would switch from the current system as indicated below to the alternative system. Treat each decision independently. No computations necessary. a. Use absorption costing instead of variable costing to report production cost per unit sold to the state of Washington. b. Use variable costing insstead of absorption costing to report gross margin per unit to the Company headquarters. The Company is concerned about controlling costs given certain factors. For example, the state of Washington now levies a new sugar tax on the production cost per unit sold of flavored (non-cola) beverages (e.g, Snapple). Also, for the highly competitive specialty coffee market segment (e.g., Keurig), the Company now uses gross margin per unit to evaluate its managers. 3. (2 points) All else held constant, what would be the impact of the following decisions on CURRENT OPERATING INCOME - increase, decrease, or stay the same? Briefly explain why the Company would switch from the current system as indicated below to the alternative system. Treat each decision independently. No computations necessary. a. Use absorption costing instead of variable costing to report production cost per unit sold to the state of Washington. b. Use variable costing insstead of absorption costing to report gross margin per unit to the Company headquarters