The Specialised Manufacturing Company produces a single product. It has prepared its financial statements using both absorption costing (AC) and variable costing (VC) principles.

Under which of the following circumstances would its net profit under AC be either the same OR higher than its net profit under VC for a particular period?

1. If there are zero units of beginning inventory and zero units of ending inventory

2. If there are 100 units in beginning inventory and zero units of ending inventory

3. If there are 0 units of beginning inventory and 100 units of ending inventory

Group of answer choices

Statement 1 only

Statement 2 only

Statement 3 only

Statement 1 and 3 only

Statement 1 and 2 only