Ramon Company Reported the Following Units of Production and Sales

Multiple Choice

Ramon Company reported the following units of production and sales for June and July 2011: $\begin{array}{lrr}&\text { Units }\\\text { Month } & \text { Froduced } & \text { Sold} \\\text { June 2011 } & 100,000 & 90,000 \\\text { July 2011 } & 100,000 & 105,000\end{array}$ Net income under absorption costing for June was £40,000; net income under variable costing for July was £50,000. Fixed manufacturing costs were £600,000 for each month. How much was net income for June using variable costing?

A) £40,000
B) £20,000
C) £(40,000)
D) £(20,000)