Variable and Absorption Costing Scott Manufacturing makes only one product with total unit manufacturing costs of $54, of which $40 is variable. No units were on hand at the beginning of 2019 . During 2019 and 2020 , the only product manufactured was sold for $65 per unit, and the cost structure did not change. Scott uses the first-in, first-out inventory method and has the following production and sales for 2019 and 2020 : a. Prepare gross profit computations for 2019 and 2020 using absorption costing. Do not use negative signs with your answers. b. Prepare gross profit computations for 2019 and 2020 using variable costing. Do not use negative signs with your answers. Select the most appropriate statement. If production volume exceeds sales volume, the absorption costing gross profit will be higher than the variable costing gross profit. f sales volume exceeds production volume, the absorption costing gross profit will be higher than the variable costing gross profit. If production volume exceeds sales volume, the variable costing gross profit will be higher than the absorption costing gross profit. Olf sales volume exceeds production volume, the variable costing gross profit will be lower than the absorption costing gross profit