Assuming fixed costs remain constant,and a company produces more units than it sells,then income under absorption costing is less than income under variable costing.

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Under absorption costing, fixed costs are included in the cost of production and assigned to units sold as well as units produced but not sold. Therefore, if a company produces more units than it sells, the fixed costs will be spread over a larger number of units, reducing the cost per unit and increasing income. In contrast, under variable costing, fixed costs are only assigned to units sold, so if a company produces more units than it sells, the fixed costs are not spread over those units and income will be lower.

Assuming Fixed Costs Remain Constant,and a Company Produces More Units