Radial Fuel Cells Experienced the Following Costs in 2014 (Assume

Multiple Choice

Radial Fuel Cells experienced the following costs in 2014 (Assume the same unit costs in all years) : $\begin{array}{lr}\text { Direct materials }&\$ 4 \text { per unit }\\\text { Direct labor }&\$ 8 \text { per unit }\\\text { Manufacturing Overhead Costs }\\\text { Variable } & \$ 2 \text { per unit } \\\text { Fixed } & \$ 150,000\\\text { Selling \& Administrative Costs }\\\text { Fixed selling } & \$ 30,000 \\\text { Variable selling } & \$ 1 \text { per unit } \\\text { Fixed administrative } & \$ 20,000\end{array}$ During the year, the company manufactured 50,000 units and sold 45,000 units. Beginning inventory is zero. If net income for the year was $265,000 using full costing, what would net income be if the company used variable costing?

A) $250,000
B) $265,000
C) $270,000
D) $450,000