- ZB Toys started 2017 with no inventories. During the year, its expected and actual production was 30,000 units, of which it sold 24,000 units at $50 each. Cost data for the year is as follows: Manufacturing costs incurred: Variable: $525,000 Fixed: $372,000 Marketing costs incurred: Variable: $144,800 Fixed: $ 77,400 Calculate ZB Toys's operating income under (a) variable costing and (b) absorption costing. Explain why operating income differs under the two approaches. (40 marks)