Figure 7-1
the Following Information Pertains to Mayberry Ltd -Refer to Figure 7-1

Multiple Choice

Figure 7-1
The following information pertains to Mayberry Ltd.: $\begin{array}{lr}\text { Beginning inventory } & 1,000 \text { units } \\\text { Ending inventory } & 6,000 \text { units } \\\text { Direct labour per unit } & £ 40 \\\text { Direct materials per unit } & 20 \\\text { Variable overhead per unit } & 10 \\\text { Fixed overhead per unit } & 30 \\\text { Variable selling and admin. costs per unit } & 6 \\\text { Fixed selling and admin. costs per unit } & 14\end{array}$
-Refer to Figure 7-1. Absorption costing net income would be ____ variable costing net income.

A) £150,000 greater than
B) £150,000 less than
C) £240,000 less than
D) £240,000 greater than