Front Company Had Net Income of $72,500 Based on Variable

Multiple Choice

Front Company had net income of $72,500 based on variable costing.Beginning and ending inventories were 800 units and 1,200 units,respectively.Assume the fixed overhead per unit was $7.90 for both the beginning and ending inventory.What is net income under absorption costing?

A) $69,340
B) $75,660
C) $88,300
D) $56,700
E) $72,900