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a$.$ Remember that under variable costing, regardless of whether units or units are manufactured, no fixed manufacturing costs are allocated to the units

manufactured. Instead, all fixed manufacturing costs are treated as a period expense. Therefore the change in units times the per unit fixed costs for the greater

production level is the difference in income between the two costing methods.

b$.$ Remember that since all fixed manufacturing costs are treated as period expenses under variable costing, there are no differences in income between the two

plans.