Radial Fuel Cells Experienced the Following Costs in 2017 (Assume

Multiple Choice

Radial Fuel Cells experienced the following costs in 2017 (Assume the same unit costs in all years) : $$\begin{array} { l r } \text { Direct materials } & \$ 4 \text { per unit } \\\text { Direct labor } & \$ 8 \text { per unit } \\\text { Manufacturing Overhead Costs } & \\\quad \text { Variable } & \$ 2 \text { per unit } \\\quad \text { Fixed } & \$ 150,000 \\\text { Selling \& Administrative Costs } & \\\quad \text { Fixed selling } & \$ 30,000 \\\quad \text { Variable selling } & \$ 1 \text { per unit } \\\text { Fixed administrative } & \$ 20,000\end{array}$$ 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