Net Income ander Absorption Costing for Two Years. (Appendix). Varab Company computes its net income on a variable costing basis for internal purposes. For 20x3, this amount was $65,000, for 20x4, $82,000 Unit sales and production for each year were as follows: 2013 Sales Production 2014 75.000 50,000 72.000 60,000 Fixed factory overhead was $90,000 each year. The company uses the LIFO method of inventory valuation. Determine the amount of net income under absorption costing for 20x3 and 20x4.