VJ Toys started 2020 with no inventories. During the year, their expected and actual production was 25,000 units, of which they sold 20,000 units at $70 each, Coss data for the year is as follows: - 17 (Cick the icon 10 view the cost data.) Calculate VJ Toys' operating incorne under (1) variable costing, and (2) absorption costing Explain why operating income differs under the fwo approachet. Begin by calculating VJ Toy' operating income under (1) variable costing (It an input field is not used in the table, leave the input field empty, do not select a label or enter a zero ) Revenues Variable cost of goods sold Varsable marketing costs Contribution margin Facd manufacturing costs Ficed manufacturing coets Operating income Data table Manufacturing costs ineurred: Variable: Fixed: \$ 530,000 $290,000 Marketing costs incurred: Variable: \$ 124,500 Fixed: $76,300 Ficed manufacturing costs Operating income Now calculate VJ Toys' operating income under (2) absorption costing. (If an input field is not used in the table, leave the input field empty; do not select Absorption costing treats fxed manufacturing cost as a , while variable costing treats it as a VJ Toys has units in ending inventory. Under absorption costing, these units have a fixed manufacturing cost of per unit. So the total fixed manufacturing cost in ending inventory under absorption costing is Since these costs are inventoried under costing, and not expensed as they would be under costing, operating income is under absorption costing by