The following table shows the inventory balances, in units, for years 1, 2 and 3. Total fixed manufacturing costs were $ 63,000 for each of the last five years. The units in Year 1 beginning inventory were based on production of 600 units. Year 1 2 3 100 0 200 Beginning inventory Production Sales 600 700 700 (700) (500) (700) Ending inventory 0 200 200 For each year, calculate the difference between absorption costing and variable costing operating income. Indicate which costing system has the higher net income. Year 1 2 3 Difference in operating income $ Costing system that has higher net income Absorption Costing Variable Costing Neither