Bernardo Company Reported the Following Units of Production and Sales

Multiple Choice

Bernardo Company reported the following units of production and sales for August and September 2014: Net income under absorption costing for August was $40,000; net income under variable costing for September was $50,000. Fixed manufacturing costs were $600,000 for each month.
How much was net income for August using variable costing?

A) $40,000
B) $20,000
C) $(20,000)
D) $(40,000)