Under absorption$$ costing, operating income is a function of

$$

$$

both sales and production.

production.

sales.

During

$20202020,$

MonetteMonette

experienced a

$$

$$

large decrease

large increase

no change

in inventory levels as a result of

$$

$$

a new machine being purchased that did not work properly.

decreased production.

increased production.

units shipped out due to a product recall.

The end result was that much of

$$

$$

$2019\text{'}$s beginning inventory passed through cost of goods sold in the following year.

$2020\text{'}$s beginning inventory passed through cost of goods sold in $2020.$

$2020\text{'}$s ending inventory will pass through cost of goods sold in the following year.