The inventory ledger account of Yim Inc. shows that the level of inventory of the manufactured product has increased by 10,000 units over the period. Yim provided the following unit cost information for its manufacturing and non-manufacturing costs:
Variable Fixed
Manufacturing costs per unit 12.50 5.60
Selling and administrative costs per unit 5.00 2.00
Which of the following statements is true?
A. Net income will be the same under both variable and absorption costing.
B. Net income under absorption costing will be $76,000 more than under variable costing.
C. Net income under variable costing will be $56,000 less than net income under absorption costing.
D. The difference in net income cannot be determined.