Under absorption costing and variable costing, how are fixed manufacturing costs treated? Absorption: Period Cost AND Variable: Product Cost Absorption: Product Cost AND Variable: Period Cost Absorption: Period Cost AND Variable: Period Cost Absorption: Product Cost AND Variable: Product Cost Cannot be determined from the information given. Question 37 Shepherd Corporation has sales of $2,000,000, variable costs of $1,100,000, and fixed costs of $750,000. Shepherd's degree of operating leverage is 2.40 1.47 6.00. 1.22. 1.20