Question: Finlandia Frankfurters (FF), incorporated in Finland, uses variable costing for external reporting. On 1st January, it is purchased by Belgian Bagels, which uses absorption costing, and FF is obliged to adopt the parent company's accounting method for the purposes of filing consolidated accounts. At the time of the merger, FF had 4,000 units in inventory and production costs remained stable over the following year. Which is true about FF's income in the first post-merger year? If sales are 10,000 units and production 12,000 units, variable costing income (VCI) exceeds full costing income (FCI) If sales are 10,000 units and production 10,000 units, FCI exceeds VCI If sales are 10,000 units and production 8,000 units, VCI exceeds FCI If sales are 12,000 units and production 10,000 units, FCI exceeds VCI Unable to determine