Variable cost per propeller Total fixed cost for the year $1,339,800 $774,900 Manufacturing cost Selling and administrative expense $121 $38 In its first year of operations, Cutterski produced 81,200 propellers but only sold 73,800. Which costing method (variable or absorption) will generate a higher net operating income in Cuttersk's first year of operations and by how much? Multiple Choice variable by $122,100 Variable by $199,800 absorption by $122.100