The inventory ledger account of Yim Inc. shows that the level of inventory of the manufactured product has increased by 12,000 units over the period. Yim provided the following unit cost information for its manufacturing and non-manufacturing costs:

	Variable	Fixed
Manufacturing costs per unit	$20.00	$8.00
Selling and administrative costs per unit	$5.00	$2.00

The effect on operating income if absorption costing is used rather than variable costing would be a:

$120,000 increase

$120,000 decrease

$96,000 decrease

$96,000 increase