Problem Six Harmony Lights produces flashlights. It has a varile manufacturing cost of $2.80 per unit, a yaciable selling cost of $0.90 per unit, a fixed manufacturing cost ar, and a fixed selling and administratives of $22. S wear. The selling price of each flashlight is $12.00. At the beginning of the year, Harmony had to units in Finished Goods. There are no units in beginning or ending W.L.P. inventory a. IF 11.400 units are prodused and sold by what amount will operating income difler under absorption and variable costing? Explain why this occurs. b. How much is expensed as period costs under absorption costing? Under variable costing? c. What happens to the cost per flashlight under absorption costing when more flashlights are produced? Explain why this occurs. d. The production manager receives a bonus based on gross margin for the year. Assume sales remain at 11,400 units. What effect will the production of 14,000 units have on her bonus (as compared to the production of 11.400 units)? Explain why this occurs. A) Vonable 10 of 10