If the units produced and unit sales are equal, which method would you expect to show the higher net operating income, variable costing or absorption costing? Why?

Variable costing typically shows a higher net operating income than absorption costing. This is because under variable costing, only direct costs are charged against revenue, while under absorption costing, both direct and indirect costs are charged against revenue. This means that under absorption costing, more expenses are deducted from revenue, resulting in a lower net operating income.