Which of the Following Correctly Represents How to Calculate Absorption

Multiple Choice

Which of the following correctly represents how to calculate absorption net income assuming no change in the fixed overhead rate?

A) Variable net income - (Change in Inventory units x Fixed Overhead Rate)
B) Variable net income + (Change in Inventory units x Fixed Overhead Rate)
C) Variable net income - (Change in Inventory units x Variable Overhead Rate)
D) Variable net income + (Change in Inventory units x Variable Overhead Rate)
E) None of the above