Variable Costing-Production Exceeds Sales Fixed manufacturing costs are $46 per unit, and variable manufacturing costs are $138 per unit. Production was 132,000 units, while sales were 125,400 units. a. Determine whether variable costing operating income is less than or greater than absorption costing operating income. Variable costing operating income is greater than absorption costing. b. Determine the difference in variable costing and absorption costing operating income