The following table shows the inventory balances, in units, for years 1, 2, and 3. Total fixed manufacturing costs were $52,000 for each of the last five years. The units in Year 1 beginning inventory were based on production of 500 units. Year 1 2 3 Beginning inventory 120 0 120 Production 500 620 620 Sales (620) (500) (620) Ending inventory 0 120 120 For each year, calculate the difference between absorption costing and variable costing operating income. Indicate which costing system has the higher net income. 1 Difference in operating income $ Costing system that has higher net income Variable Costing 12480 i $ Year 2 10064.52 Absorption Costing Neither 3 i