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Year 1 Year 2 Units (spice racks) produced 40,000 40,000 Units {spice racks) sold 37,000 41,000 Absorption costing net operating income 5}; 44,000 $1 52,000

Year 1 Year 2 Units (spice racks) produced 40,000 40,000 Units {spice racks) sold 37,000 41,000 Absorption costing net operating income 5}; 44,000 $1 52,000 Variable costing net operating income $ 38,000 W

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