Woolworth Industries manufactures and sells a single product. The controller has prepared the following income statement for the most recent year: Requirements 1. Will the company's operating income under variable costing be higher, lower, or the same as its operating income under absorption costing? Why? Project the company's operating income under variable costing without preparing a variable costing income statement. (Click the icon to view the data.) 2. The company produced 13,000 units and sold 6,500 units during the year ending December 31. Fixed manufacturing overhead (MOH) for the year was $234,000, while fixed operating expenses were $57,000. The company had no beginning nventory 3. Prepare a variable costing income statement for the year. Requirement 1. Will the company's operating income under variable costing be higher, lower, or the same as its operating income under absorption costing? Why? Woodwonth's operatingincome under variable costing willbe s operating income under absorption costing This is because under absorption cosing ! its operating income under absorption costing. This is because under absorption costing some of | Under variable costing