Futon Delight Experienced the Following Costs in 2014 (Assume the Same

Multiple Choice

Futon Delight experienced the following costs in 2014 (Assume the same unit costs in all years) : $\begin{array}{lr}\text { Direct materials }&\$ 2.00 \text { per unit }\\\text { Direct labor }&\$ 1.00 \text { per unit }\\\text { Manufacturing overhead costs }\\\text { Variable } & \$ 1.50 \text { per unit } \\\text { Fixed } & \$45,000\\\end{array}$ There were 600 units in beginning inventory. During the year, the company manufactured 18,000 units and sold 17,600 units. If net income for the year was $54,000 using full costing, how much will net income be if the company uses variable costing?

A) $53,000
B) $50,000
C) $55,000
D) More information is needed to determine the answer.