Jupiter Corporation incurred fixed manufacturing costs of $18,000 during 2017. Other information for 2017 includes:
The budgeted denominator level is 2,400 units
Units produced total 2,700 units
Units sold total 1,600 units
Variable cost per unit is $4
Beginning inventory is zero
The fixed manufacturing cost rate is based on the budgeted denominator level.
The operating income using variable costing will be​ ________ as compared to the operating income under absorption costing.​ (Round any intermediary calculations to the nearest cent and your final answer to the nearest​ dollar.)
O higher by $8,250.00
O lower by $2,250.00
O lower by $8,250.00
O higher by $2,250.00