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The following table shows Jackson Company's inventory balances, in units, for years 1, 2 and 3. Total fixed costs were $20,000 for each of the last three years. The units in year 1 beginning inventory were based on production of 500 units. Year 1 2 3 Beginning Inventory 40 0 30 Production 100 130 Sales 140 100 Ending inventory 0 30 30 Your are required to calculate the difference between absorption costing and variable costing operating income for each year. Indicate which costing system has the highest income each year. Assume the LIFO method is used in year three. Year 1- Variable costing operating income is higher by $ Year 2- Absorption by $ operating income is higher Year 3- Variable or Absorption costing operating income will be higher v 160 160