Lockhart Products Produces a Single Product Lockhart Had No Units in Beginning Inventory

Multiple Choice

Lockhart Products produces a single product.During 2009 the company incurred the following costs:
$\begin{array}{lr} \text { Variable product costs } & \text {\( \$ 8.00 \) per unit } \\ \text { Variable period costs } & \text {\( \$ 2.00 \) per unit } \\ \text {Total fixed product costs } &\$21000\\ \text { Total fixed period costs } &\$10000\\\end{array}$

Lockhart had no units in beginning inventory.During 2009,6000 units were produced and 5000 units were sold.Which of the following statements is true when comparing net income using absorption versus variable costing?

A) Net income will be $3500 higher using absorption costing than using variable costing.
B) Net income will be $3500 lower using absorption costing than using variable costing.
C) Net income will be $4200 higher using absorption costing than using variable costing.
D) Net income will be $4200 lower using absorption costing than using variable costing.