See It Data Table - > Contribution Margin (Variable Costing) Income Statement For the Year Ended December 31 Sales revenue 8,858,000 ra Less: Variable expenses Variable cost of goods sold Variable operating expenses Contribution margin 4,944,000 1,442,000 Sales price. 43 Variable manufacturing expense per unit ... 21 Sales commission expense per unit $ 7 Fixed manufacturing overhead $ 1,980,000 Fixed operating expenses.. 235.000 Number of goggles produced 220.000 Number of goggles sold 206.000 $ 2,472,000 Less Fixed expenses Fixed manufacturing overhead 1,980,000 Fixed operating expenses 235.000 $ 257,000 Print Operating income Done Requirement 2. Which statement shows the higher operating income? Why? Absorption costing operating income is higher than variable costing operating income. This is because absorption costing defers $ 126,000 of fixed manufacturing overhead as an asset in ending inventory. In contrast, variable costing expenses all of the fixed manufacturing overhead during the year. Variable costing expenses $ than absorption costing income the year. costs during the year, so variable costing operating income is $ NO C less n any list or enter any number in the input fields and then click Check Answer. more