Raymond Company
Raymond Company Reported the Following Units of Production

Multiple Choice

Raymond Company
Raymond Company reported the following units of production and sales for June and July: $$\begin{array} { l r r } & \text { Units } & \text { Units } \\\text { Month } & \text { Produced } & \text { Sold } \\\text { June } & 100,000 & 90,000 \\\text { July } & 100,000 & 105,000\end{array}$$ Net income using the absorption costing method for June was $40,000; net income using the variable costing method for July was $50,000. Fixed manufacturing costs were $600,000 for each month.
-Refer to Raymond Company. What was the net income for June using the variable costing method?

A) $20,000 net loss
B) $20,000 net income
C) $40,000 net loss
D) $40,000 net income