Juanita Perez is the president of Allgood Manufacturing, Inc. Allgood manufactures electric Obj. 4 power tools. The company uses the absorption-costing method. Over the past year, sales increased significantly at Allgood, reducing the company's inventories \(60 \%\) from the beginning of the year. When she looked at the year's sales figures, Juanita was surprised that net income was lower than anticipated. What factors might have been at work here?