Answer the Following Question(s) Using the Information Below

Multiple Choice

Answer the following question(s) using the information below.
Peggy's Pillows produces and sells a decorative pillow for $75.00 per unit. In the first month of operation, 2,000 units were produced and 1,750 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes:

-Helton Company has the following information for the current year: What is the difference between operating incomes under absorption costing and variable costing?

A) $65,000
B) $50,000
C) $40,000
D) $5,000
E) $70,000