Use the Following Information for Questions

Multiple Choice

Use the following information for questions
Nielson Corp. sells its product for $6,600 per unit. Variable costs per unit are: manufacturing, $3,600, and selling and administrative, $75. Fixed costs are: $18,000 manufacturing overhead, and $24,000 selling and administrative. There was no beginning inventory at 1/1/15. Production was 20 units per year in 2018-2020. Sales were 20 units in 2018, 16 units in 2019, and 24 units in 2020.
-For the three years 2018-2020,

A) absorption costing income exceeds variable costing income by $8,000.
B) absorption costing income equals variable costing income.
C) variable costing income exceeds absorption costing income by $8,000.
D) absorption costing income may be greater than, equal to, or less than variable costing income, depending on the situation.