Question: Fixed costs are $10 per unit, and variable costs are $25 per unit. Production for the period was 13,000 units, but sales were 12,000 units.

Fixed costs are $10 per unit, and variable costs are $25 per unit. Production for the period was 13,000 units, but sales were 12,000 units.

Which costing method will produce the greater operating income?

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