The following inventory valuation errors were discovered by Knox Corporation's new controller just after the annual financial statements were published at the end of Year 3.
The year 3 ending inventory was understated by $17,000.
The year 2 ending inventory was understated by $61,000.
The year 1 ending inventory was overstated by $23,000.
The net income for Knox in each of these years was:

\begin{array}{|l|rr|r|}\hline & \text { Year 3 } & \text { Year 2 } & \text { Year 1 } \\\hline \text { Net income } & \$ 168,000 & \$ 254,000 & \$ 138,000 \\\hline\end{array}

Assuming there were no income taxes,what was the adjusted net income in each year?

\begin{array}{|l|r|r|r|}\hline & \text { Year 3 } & \text { Year 2 } & \text { Year 1 } \\\hline \text { A) } & \$ 212,000 & \$ 170,000 & \$ 161,000 \\\hline \text { B) } & \$ 124,000 & \$ 338,000 & \$ 115,000 \\\hline \text { C) } & \$ 90,000 & \$ 338,000 & \$ 161,000 \\\hline \text { D) } & \$ 124,000 & \$ 170,000 & \$ 115,000 \\\hline\end{array}

A) Option A
B) Option B
C) Option C
D) Option D

Within the Relevant Range,what Is the Difference Between Variable Costs

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