S&P Enterprises Sold 10,000 Units of Inventory During a Given

Multiple Choice

S&P Enterprises sold 10,000 units of inventory during a given period. The level of inventory of a manufactured product remained unchanged. The manufacturing costs were as follows: Which of the following statements is true?

A) Net income will be the same under both variable and absorption costing.
B) Net income under variable costing will be $45,000 less than net income under absorption costing
C) Net income under absorption costing will be $40,000 more than under variable costing.
D) The difference in net income cannot be determined.